Gulf economies demonstrate strong fiscal resilience during current crises, says GCC Secretary-General

The Secretary General of the Gulf Cooperation Council (GCC), Jasem Mohamed Albudaiwi, has praised the strong fiscal and macroeconomic resilience of the GCC's economies. This resilience was commended by the International Monetary Fund (IMF) amidst the current crises.

During a joint meeting of GCC Ministers of Finance and Economy and Central Bank Governors with the IMF's Managing Director, Albudaiwi acknowledged the complex economic and geopolitical landscape the region is navigating. He noted that disruptions in energy production, shipping, logistics, and trade have shown the rapid impact of geopolitical changes on GCC economies and global markets.

Despite these challenges, Albudaiwi highlighted that GCC economies have proven robust macroeconomic and fiscal resilience. This was not a result of chance, but due to years of prudent economic policies, substantial financial buffers, resilient banking systems, and strategic investments in infrastructure, connectivity, and economic diversification.

Albudaiwi stressed that the immediate focus should be on maintaining macroeconomic and fiscal stability, while keeping policies flexible, responsive, and in sync with rapid developments. He emphasized that responses should not just manage the immediate effects of geopolitical shocks, but also build resilience into the GCC's economic structure.

Furthermore, Albudaiwi called for accelerating efforts towards economic integration. This includes facilitating the cross-border movement of goods, services, capital, and people, strengthening regional supply chains, and setting up resilient commercial and logistics corridors. He also underscored the need for advancing structural reforms to boost the private sector, increase competitiveness, encourage technological innovation and digital transformation, and speed up the shift towards diversified, knowledge-based economies.

Albudaiwi urged for strengthening policy frameworks, deepening intra-GCC coordination, finishing remaining integration steps, and reinforcing partnerships with international institutions, especially the IMF.