GCC non-oil sectors to rebound strongly in 2021

Posted on July 6, 2020

As per PwC despite the Opec+ deals in May and June, the oil price outlook remains weak, with an average price of just $36/barrel this year, down from $64 in 2019 and only slowly rising to $59 by 2024. IMF forecasts see a -4.3 % contraction in the non-oil sector, nearly 8 % points below its pre-crisis forecast of 3.6 % growth Governments have rolled out a wide range of fiscal policies, including stimulus to bolster the economy These fiscal moves are expected to have an impact on economic growth In 2021, there should be a significant rebound in non-oil sectors, as lockdowns end and demand recovers Qatar, along with two other sovereigns, have together issued $27bn in eurobonds since the start of the crisis Bahrain managed to issue $2bn and Oman raised over $0.5bn in local debt. Stimulus measures have been focused on facilitating bank lending and easing the burden of loan payments for companies facing a temporary cash crunch