Monday, Jun 11, 2012
1235 GMT [Zawya Dow Jones]--Oil-rich Gulf Cooperation Council states must curb spending to avoid financial troubles in 5 to 10 years time, says Said Hirsh, a senior economist at London-based Capital Economics. Warns of growing GCC economies' "vulnerability" on the medium to longer term to economic developments including a drop in oil prices. Says it would be harder for GCC to reverse their announced social spending hikes, given their rapidly rising population. Says a drop in oil prices to as low as $90 per barrel won't affect GCC economies in 3 years given their large reserves and lower debt levels. Hirsh expects Bahrain to be the only GCC state to record a deficit should oil prices fall below $100 per barrel, as it budgets for higher than that. (leila.hatoum@dowjones.com)
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(END) Dow Jones Newswires
11-06-12 1243GMT
