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Rainy-day oil funds see Middle East through downturn

Rainy-day oil funds see Middle East through downturn

The Middle East has weathered the global economic downturn better than other parts of the world because the region's energy exporters were able to tap billions of dollars in oil profits from when prices were booming, the International Monetary Fund (IMF) said yesterday.
By reaching into those reserves, major oil producers like Saudi Arabia shielded their economies from the worst of the slump by maintaining government spending and injecting liquidity into domestic banking systems rattled by the credit crisis.
Spillover effect
Doing so not only blunted the impact of the downturn on their own economies, but also "generated positive spillovers for their neighbors," said IMF Middle East and Central Asia Department Director Masood Ahmed.


Updated : 2021-10-16 18:06 GMT+08:00