The Gulf economy in general will return to growth in 2018 after shrinking in some of its countries, but remains vulnerable to oil price volatility, the International Monetary Fund said in a report released on Tuesday.
The IMF explained that the rise in oil prices after the significant decline until 2016 will allow the Gulf economy to grow by 2.4% this year and 3% in 2019, after shrinking by 0.4% in 2017.
With the oil market unstable and volatile, the IMF warned that "the growth prospects of the oil-exporting countries are affected by serious doubts about the course of oil prices in the future."
Growth in the oil-producing countries outside the Gulf - Iran, Iraq, Algeria and Libya - is expected to reach 0.3%i n 2018, after rising to 3%t he previous year, before rising to 0.9%in 2019, the IMF said.
"This reflects a significant re-imposition of US sanctions on Iran, which will likely reduce Iran's production and exports over the next two years," he said.
