Considered the Director-General of the International Monetary Fund Christine Lagarde that the continued decline in crude oil prices could push the Gulf Cooperation Council (GCC) to face deficits in their budgets.
She said Lagarde told reporters that if oil prices remained at this level, it may lead to a decline 8 percent in the gross domestic product of the Gulf Cooperation Council and "swamped a number of them in the fiscal deficit."
But Lagarde that participated in the meeting of finance ministers and central bank governors in the Gulf Cooperation Council in Kuwait urged member states to reform their economies and take measures to improve public finances. For , but added that these countries have a lot of resources that qualifies them to ease the direct implications of such a deficit.
The Minister of Finance of Kuwait Lance Saleh announced that declining oil price began to affect the financial Gulf Arab countries, pointing to the need to carry out economic reforms.
The minister pointed out good prospects for economic growth in the six-nation Gulf Cooperation Council, which is expected to reach 4.5 percent for the fiscal year 2014-2015 states, but he thought he should be dealt with cautiously these expectations.
He said that "these prospects must Altaama with caution in light .. decline in oil prices, which began affecting the public finances in the Gulf Cooperation Council (GCC)."
It was good talking at the meeting, which was held in Kuwait in the presence of Director of the International Monetary Fund.
The Council includes Saudi Arabia, UAE, Kuwait, Oman, Qatar and Bahrain, these countries produce 17 million barrels per day of oil and oil revenues constitute 90 percent in most of the state's resources.
The decline in the price of a barrel of oil by 25 percent since last June because of rising production and weak demand and concerns about global growth.
He said the Kuwaiti minister said it is necessary to carry out economic reforms in the GCC countries where public expenditure has consistently rising.
He stressed the need to promote investment and the private sector.
"It must implement comprehensive reforms of economies to contain public expenditure and diversify sources of income, including reducing dependence on oil," adding that "the application of these policies has become unavoidable."
According to the International Institute of Finance, the oil accumulated GCC countries, thanks to high oil prices in the last decade, financially backed worth 2450 billion dollars.
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