IMF urges GCC adapt to oil prices

Dubai International Monetary Fund on Monday forecast economic growth of the nation Gulf Cooperation Council (GCC) countries 6 members may grow 1.8 percent this year, down from a 3.3 percent growth in 2015, and the fund also urged the group to cut costs.

In an interview with the AFP news agency, Mr. Masood Ahmed, director of the IMF, said that countries in the Persian Gulf nation oil exports should continue to diversify its revenue base, which faces chronic crude prices.

Biggest oil exporter in OPEC, Saudi Arabia on Monday is expected to announce reforms aims to diversify relies almost entirely on oil prices are slowing.

Ahmed cited the Council GCC are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates: This year we will see ongoing status of lower oil prices, so we will see further, earnings from exports oil may be $ 100 billion, or roughly.

He said in Dubai, where he launched a program to update its regional economic outlook the IMF said: 'The current situation has begins to affect not only the government's financial sector, but also economic, related to the economic activities of those countries' .

Oil prices have fallen about 70 percent compared to the highest price in the middle of 2014, at $ 40 a barrel. The IMF said the market expects oil prices will rebound gradually to 50 by the end of the decade.

The country with the largest economy in the Arab region, Saudi Arabia is expected to achieve economic growth 1, 2 percent this year, compared with 3.4 percent in 2015.

Economic growth in the United Arab Emirates will also drop from 3.9 percent last year to 2.4 percent in 2016 .

The IMF report said that Saudi Arabia, Bahrain and Oman will be a lot of debt from 2016 to 2021 financing needs are greater than their cash reserves.

The decline in revenue has forced countries in the Persian Gulf oil and energy subsidy cuts ever before and plans to use indirect taxes as well. They also cut spending on some major projects.

Ahmed said: 'They need to continue to take measures that their countries have started to reduce and adjust its cost and revenue collection measures, such as value-added tax VAT.