DUBAI (Reuters) – Japan’s Mitsubishi UFJ Financial Group Inc (MUFG) <8306.T> expects countries in the six-nation Gulf Cooperation Council (GCC) to be in deep recession this year with overall real GDP down to -3.7% from a previous growth forecast of 2.9%.
The bank said in a research note on Monday the new forecast took into account oil output cuts, the impact of the new coronavirus on the non-oil economies of the region, and the stimulus provided by GCC governments.
The bank estimates the drop in oil prices costs the six nations – Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman – some $72 billion in overall lost oil export receipts for each $10 a barrel drop, and said it expects overall GCC financing requirements of $208 billion this year assuming an average Brent price of $43 per barrel.
(Reporting by Davide Barbuscia, editing by Louise Heavens)
