(MENAFN) The Gulf Cooperation Council (GCC) is anticipated to witness a deficit of USD275 billion in export revenues this year on the back of lower oil prices, as the available data shows.
According to the International Monetary Fund (IMF); total development pace in the region is forecasted to decrease to 3.2 percent in 2016 and more 2.78 percent over 2017.
In order to deal with this major problem; the Gulf nations need to strengthen fiscal policy through higher non-oil tax and energy prices as well as control over public division wages.
However, practical policies over the past decade have enabled them to build up financial buffers, which avoid the need for a "sudden or disruptive" adjustment in fiscal policy.
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