‘GCC economy may take 3 years to return to pre-pandemic levels’: Moody's
Published 06 Jan,2021 via Muscat Daily - The economy of the GCC countries may take up to three years to return to pre-pandemic levels as subdued oil revenues are likely to slow the recovery process in the region, Moody’s Investors Service said on Wednesday.
Moody’s said its negative 2021 outlook for sovereign creditworthiness in the GCC reflects the coronavirus-related fall in oil revenue which is driving this year’s deterioration in fiscal strength, while constraining government spending and slowing the economic recovery.
‘We expect that it will take 2-3 years for real GDP in GCC sovereigns to return to pre-pandemic levels, with the recovery most protracted in the more economically diversified sovereigns, where key sectors such as transportation and tourism will be slow to return to health,’ the ratings agency said in a new report published on Wednesday.
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