What did the war between Iran, America and Israel's captives bring to the economy of the Persian Gulf?
Sarah Fiaz.
BBC Arabic Business Correspondent.
The economies of the member states of the Persian Gulf Cooperation Council have experienced three periods of widespread recession in the past fifty years, involving most of the countries of this council.
The first wave occurred during the oil market crisis of the first half of the 1980s, causing the economies of Saudi Arabia, the United Arab Emirates, Qatar and Kuwait to contract in 1982. These four economies contracted again in 1985 and Bahrain joined them.
This situation was associated with a decrease in demand for oil and a decrease in production to protect prices, and in some countries, the depletion of oil fields also led to a decrease in production.
The second wave occurred in 2020, when all six economies of the Persian Gulf contracted under the pressure of the Corona epidemic and reduced the demand for oil.
Today, the countries of the Persian Gulf Cooperation Council are facing the third wave. The International Monetary Fund predicts that five of the six member countries will enter recession this year due to the consequences of the US and Israel's war in Iran, and only Oman will remain on the growth path.
According to the fund's forecast, the economy of Saudi Arabia will contract by 3.3%, the United Arab Emirates by 9.3%, Qatar by 6.15%, Kuwait by 7.16% and Bahrain by 3.11%, while the economy of Oman is expected to grow by 1.4%.
This means that the three Persian Gulf economies are expected to shrink by more than 10% in one year; This is the first time in the available data for more than half a century. Continue the news in the link: