Gulf Set To See Robust Growth Despite Oil Price Drop

The immediate economic outlook for most of the Gulf’s wealthy Arab oil exporters has improved in the last few months despite a sharp drop in global oil prices over the period, a Reuters poll of analysts showed on Tuesday.

Since the previous poll was conducted in March, the price of Brent crude has plunged by $40 to as low as $88 per barrel because of signs that the global economy is slowing.

But oil has since recovered to around $99, and analysts believe that level, combined with heavy government spending and healthy consumer demand, will be enough for the Gulf states to continue growing strongly this year and next.

The latest Reuters poll of 17 analysts, conducted this month, found them raising their 2012 gross domestic product growth forecasts for three of the six m e mbers of the Gulf Cooperation Council.

Arabianbusiness