IMF: Gulf to add 1.4 trillion USD in next 5 years thanks to high oil prices
Anh Phuong (VTV reporter residing in the Middle East)–Monday, May 30, 2022 09:59 GMT+7
Tensions between Russia and Ukraine are pushing many economies into turmoil, but with Gulf economies, the situation is completely opposite.
Oil prices 2022 will reach an average increase of about 55% compared to 2021, according to the forecast of the International Monetary Fund (IMF). Specifically, the average oil price in 2022 will be about 107 USD/barrel.
Calculations show that if the price of oil increases by 10 USD/barrel, the budgets of the Gulf countries will increase by more than 3%.
According to the IMF’s forecast, the oil price in 2022 will reach an average increase of about 55% compared to 2021. (Illustration image – Photo: najafchamber)
However, the Gulf projections also warn of the risk to these economies from rising food prices. The Gulf region is dominated by desert and mountainous terrain, and many countries have to import almost all of their food to meet their food needs.
According to the IMF, this year’s food prices will increase by about 14% compared to 2021, which is also the year when a very strong increase in food items is recorded.
Benefiting from high oil prices, the Gulf is forecast to be the center of innovation and creativity in the Middle East and North Africa in the coming time. In which, one of the top priority goals is to develop renewable energy to replace oil.
According to forecasts in the Gulf, although the world is “thirst” for oil, the demand for black gold will start to decline from about 2032 – 2035, to enter the era of green energy.
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