COPING WITH COVID-19 ECONOMY IN THE GCC COUNTRIES

Abstract

This paper examines how the GCC countries are dealing with COVID-19. This paper shows how this outbreak creates difficult conditions for the economy of the GCC countries. From February 2020, the number of confirmed cases continues to increase around the globe. This pandemic situation creates a very alarming situation for the economic cycle. GCC countries depend on hydrocarbon exports, and this outbreak not only reduces the epidemic but also reduces oil prices. In this situation, the GCC countries have a considerable challenge to maintain growth. As a matter of concern, this paper examines how the GDP of the GCC countries has decreased and how demands and supply shortages are occurring. The decrease in oil prices indicates that it takes time to cover these circumstances. Research also suggests that it seems difficult for oil prices to reach $45 per barrel. This pandemic is reducing travel, and this is the main cause of this shortfall. Thus, in this case, the GCC countries must manage the fiscal deficit with a fiscal stimulus. The government is already working on public financing and is providing a fiscal stimulus to the industry.