AN ANALYSIS OF MACRO ECONOMICAL FACTORS AND THEIR RELATIVE IMPACT ON GCC ECONOMY IN GENERAL

Abstract

Health of nation’s economy reflects its overall strength, which is paramount important for regional, global, political dominance, future growth, and social confidence. Evaluating economic performance in ongoing crises is herculean task and requires judicious approach to justify the macroeconomic factors involve. GCC nations are highly oil dependent economies and have deeply affected by the oil price decline, causing macroeconomic instability which impacted the region growth and development. Decline oil price impacted GCC nation’s public finance, public expenditure, job market, Banking system and FDI to a large extent. Due to this unpredictable environment most of the GCC nations are in deficit and facing high fiscal adjustments. To meet out the global economic pace and competition GCC nations require efficient, effective and futuristic strategy and also invite evaluation of economic performance and have to test the validity and authenticity of the prevailing economic circumstances that are impacting the economy in general. The carried out study is secondary data based and for the purpose authors evaluated and analysed the economic performance and tried to identify the macroeconomic factors causing hindrance in economic growth. The outcome of the study revealed the fact that GCC economies are in intense heat and facing multiple economic complexities which translated into overall decline. In last suggestions and recommendations are made