Standard & Poor's Report

Gulf States Are Increasingly Vulnerable To An Emerging Market Slowdown

Date:

Gulf States Are Increasingly Vulnerable To An Emerging Market Slowdown

Author: Alicia Miguel

  1. Rising trade and investment links with emerging Asian markets increase their economic dependence on global growth
  2. Despite these growing trade ties, the Gulf states have been largely unaffected by the recent capital outflows
  3. A sharp slowdown in emerging economies and an intensification of capital outflows would affect Gulf countries mainly through falling oil market prices
  4. Bahrain, the only country with fiscal deficit, would be the most vulnerable