Al Suwaidi expects GCC economic slowdown
The economic growth in the GCC countries may experience a slowdown in the coming years, compared to the quick pace posted in recent years, said Sultan bin Nasser Al Suwaidi, governor of the UAE Central Bank. "The GCC region will not witnessed the past years' boom, fueled by the increase in oil and gas demand," Al Suwaidi told the a forum in Abu Dhabi, according to WAM.
He based his projection on the impact of weakening American market and the ebbing economic boom in China. "Next years will not see the birth of new China," he added.
"UAE's Gross Domestic Product which achieved a 9.1 percent growth in 2007, will drop to 6.6 percent this year, to rise again to 9 percent in 2009, and then drops to 8.5 percent during 2010 and 2011," Al Suwaidi said.
According to him, the GCC countries may not follow European Union model in forming single currency. ""Gulf countries might not follow the example of European Union and the euro and are not obliged to follow criteria of Maastricht Treaty," Al Suwaidi said.