Japan’s Mitsubishi UFJ Financial Group Inc (MUFG) expects Gulf Cooperation Council (GCC) countries to be in deep recession this year with overall real GDP down to -3.7% from a previous growth forecast of 2.9%.
The Financial Group said in a research note yesterday; the new forecast took into account oil output cuts, the influence of the new coronavirus on the non-oil markets of the region, and the incentive provided by GCC governments.
MUFG estimates the drop in oil prices costs the six nations – Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman – some $72 billion in overall lost oil export receipts for each $10 a barrel drop, and said it expects overall GCC financing requirements of $208 billion this year assuming an average Brent price of $43 per barrel.
