Can the rest of MENA weather the slowdown in the Gulf?

Economic growth in the Gulf countries has slowed sharply in recent months and this has raised concerns of negative spillovers into the other MENA economies. In this Watch, we argue that, for most countries, the gains from lower oil prices – the trigger for the Gulf’s slowdown – should more than offset the impact of weaker Gulf growth. Egypt, however, looks vulnerable and a period of weaker remittances and, potentially, less generous official financing, will add to fears over the country’s balance of payments position.