Gulf economies poised for growth, IMF report says

Gulf economies are weathering global and regional challenges, fueled by non-oil sector growth and policy changes that are accelerating economic diversification, the International Monetary Fund said in a report.

This resilience positions the region for faster growth as it expands natural gas output and phases out oil production cuts.

Economists discussing the report debated the relevance of breakeven oil prices — the average crude price needed to balance government budgets — given progress on diversification and investment-focused spending, according to commentator Alaa Shahine Salha. A former IMF official said the breakeven price is a “headline-grabbing number with a lot of imperfections.”