Gulf economies well placed to weather global weakness

The Gulf looks comparatively well placed to weather the further deterioration in the global economy that we expect in 2013. Government spending has increased significantly in recent years, but there is room for further stimulus if needed, even if oil prices fall. Meanwhile, the region’s external position will remain strong. Growth is set to slow next year, but the Gulf is still likely to be one of the world’s best performing regions in 2013.