The Gulf economies are on course to grow at a decent pace this year, but the boost to their resource-poor neighbours is likely to be limited. Trade and investment links are surprisingly small. Instead, the one channel through which the resource-poor countries are likely to benefit is via aid from the Gulf, which should help these economies to stave off full-blown balance of payments crises. But the flip side is that these funds may only delay much-needed economic and institutional reforms.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services