“Inflation ‘Could Make GCC Vulnerable’”
In the November 4 edition of Gulf News (UAE), Booz & Company experts urged the governments of Gulf countries to move towards a more sustainable macroeconomic policy framework that supports continued economic growth while keeping the region’s severe inflation under check. “The GCC must move from a model characterized by overheated economic growth to one that emphasizes growth through sustainable development beginning with fighting inflation comprehensively,” said Partner Rabih Abouchakra (Middle East). Nations that choose a sustainable development growth model, and manage inflation, typically have an easier time sustaining real GDP growth and can recover far more quickly from contractions, said Booz & Company experts. “Historically, Gulf countries do not have both institutional and policy frameworks on both fiscal and monitory policy front to fight inflation,” added Partner Richard Shediac (Middle East). “Now is the time for policymakers in the region to develop strong inflation-fighting and macroeconomic stability systems.”