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The Persian Gulf monarchies predicted “incredible crisis”

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Wednesday, 25 March, 2020, 00:25
The Persian Gulf monarchies predicted “incredible crisis”

Soon Saudi Arabia and its neighbors can expect serious financial problems. About it RIA Novosti reported with reference to Bloomberg.

Thus, according to the International monetary Fund (IMF), if the oil will cost between 50 to 55 dollars per barrel, the foreign exchange reserves of Riyadh as early as in 2024 will be reduced to about the sum of five months of imports. “Just a few months the Kingdom could be in “incredible crisis” and will be forced to abandon a fixed exchange rate of the dollar, which supported the global oil trade over the life of a whole generation,” — says the author.

According to analysts, when the price of oil to $ 20 a barrel the Treasury of the six monarchies of the Persian Gulf are empty already in 2027.

March 23 in the world announced the start of the global economic crisis because of the slowdown in the economy amid the decline in business activity. The forecasts for GDP growth by the end of 2020 range from minus 2 to plus 2.7 percent. The median value is 1.6%. The IMF believes the global recession is a situation when growth is less than 2.5 percent.