The Gulf Cooperation Council and the global recession

Abstract:
At one level, the impact of the global recession on the Gulf Cooperation Council (GCC) economies has been predictable. As global growth collapsed, oil prices plummeted and, in line with that, the Gulf current account and budget surpluses shrank, some reverting to deficits; part of the $2 trillion or so mega projects in the pipeline were postponed and some abandoned. The value of the region's sovereign wealth funds (SWFs) fell sharply. As international liquidity dried up, a few banks, as expected, had to be bailed out.