Gulf States face austerity measures

The Gulf States have begun austerity measures due to reductions in petroleum prices that could lower their incomes to less than $60 billion during the current year.

It is expected that the fiscal policies could remain tight in coming years to prevent the aggravation of deficits in annual budgets.

Meanwhile Arab experts said the average petroleum prices will vary between $12 and $13 per barrel during the current year, which means that the income of Gulf Cooperation Council countries will not exceed $60 billion, the lowest level since the war of 1973.

International expert Fadel El-Halabi expected that petroleum prices in the coming years would improve, but he doubted that they would reach the rates of 1996 and 1997 when it was $18.20 per barrel.