Gulf economies set for quick recovery

It is too early for policymakers globally to begin withdrawing large stimulus packages as revival from the crisis is not over yet, but Gulf economies should recover faster than others, central bankers said yesterday.
The global economic turmoil sent Gulf economies into a downturn this year but generous spending and rising oil prices are helping the world’s top oil-producing region get back on its feet.
However, the world economy is still facing recession and high unemployment and will recover only gradually, Saudi Arabian Monetary Authority (SAMA) Governor Muhammad Al Jasser told a two-day financial forum in Kuwait.
“I don’t think that the recovery will be fast. The recovery period will be gradual,” he said. “Regarding the developing states and the Gulf countries, it will be quicker because of the opportunities of growth and the demographic changes in our countries and in countries like China and India. “The activation of the exit strategies is still too early because the issue needs better utilisation and needs to be done gradually in the next months,” Jasser said.
The kingdom embarked on one of the largest fiscal stimulus programmes among members of the Group of 20 rich and developing nations to unlock impacts of the credit crunch.