IMF call to diversify economiesSunday, October 18, 2009
MUSCAT: Gulf countries need to diversify their economies and financial sectors, International Monetary Fund (IMF) chief Dominique Strauss-Kahn said yesterday.
Gulf countries were not immune from the consequences of the financial crisis but have tackled it from "a position of strength," the IMF managing director told Gulf ministers.
"The authorities should be commended for cushioning the impact of the crisis through strong countercyclical fiscal policy, which helped sustain growth in their own economies and had positive spillovers for neighbouring countries," he said.
But he added: "There is a need to continue to diversify the financial sector, and more broadly the economy. Doing so would reduce both volatility in economic activity and financing costs for private investment, which is key to providing jobs."
