Coronavirus

GCC fiscal deficits and financing post COVID-19

The economic repercussions of the impact of novel Coronavirus and the subsequent breakdown of OPEC+ supply cut agreement is unprecedented for the gulf economies. The sudden freeze in economic activity due to various measures such as travel restrictions (curbs on flights, public transportations and taxis), closing of schools, universities, shopping malls, commercials establishments, and curfew imposition to prevent the spread of virus has created a demand shock. Transportation sector that accounts for approx. 50 percent of global oil demand by...

Visualizing a post Covid-19 World: What to expect?

Consumer behavior will change in terms of tourism, investment, e-commerce etc; Public health care spending will improve drastically even post covid-19; Maturity of government leadership and bureaucracy will deepen; Massive fiscal stimulus can trigger stagflation; Capex by oil producers will see a significant decline impacting future oil prices; Low oil price will slow down electric vehicle penetration especially in emerging economies; Currency volatility will peak; World will prepare to depend less on China for supply chain support; Climate control will...