IMF’s Azour Says It’s Important for GCC to Adjust on Fiscal Side

The video discusses the impact of oil price volatility on GCC economies, highlighting the challenges faced by oil exporters and the need for fiscal adjustments. It examines trends in foreign denominated debt and the importance of structural reforms to improve economic growth. Oman is identified as particularly vulnerable, with recommendations for continued fiscal adjustments and diversification efforts. The video emphasizes the need for GCC countries to pursue economic reforms, including reducing public sector size and increasing private sector involvement, to mitigate the effects of global economic challenges.

What is one of the main challenges faced by oil-exporting countries due to oil price volatility?

• Reducing foreign investment

• Expanding the public sector

• Increasing non-oil GDP

• Covering losses from declining oil prices

What has been the trend in foreign-denominated debt for oil-importing countries over the last decade?

• Decreased by 10%

• Increased by 34%

• Remained stable

• Increased by 15%

Which country in the GCC is considered most vulnerable due to low economic buffers?

• Saudi Arabia

• Oman

• UAE

• Bahrain

What is a crucial reform that GCC countries need to focus on to reduce vulnerability to oil price volatility?

• Expanding the public sector

• Reducing trade tensions

• Diversifying the economy

• Increasing oil production

How can GCC countries make their fiscal policies more flexible?

• By increasing oil exports

• By limiting private sector growth

• By increasing subsidies

• By reducing public sector size