The combined nominal GDP of West Asian oil producers will jump to a record high of more than $1.1 trillion in 2011 due to higher crude prices and output, a study by industrial bank has claimed.
The Emirates Industrial Bank report, however, said that the economic growth and public spending by the GCC countries could also trigger fresh inflation fears next year.
The study forecast that the region's economy will grow in real terms by around 5.4 per cent in 2010 and 6.6 per cent in 2011 after a sharp slowdown in 2009 in the aftermath of the crisis.
According to the report, West Asia, which controls over 40 per cent of the world's proven oil wealth, boosted public expenditure by nearly six per cent through 2010 as part of ongoing fiscal expansion measures to counter the repercussions of the crisis.
"It can be said that the GCC countries possess the resources to completely overcome the effects of the global crisis within the next two years.
"Our estimates show that in nominal terms, the GCC economies will swell to around $1.15 trillion in 2011 this will of increase investors' confidence in the region's economies which are now classified as fast growing economies these economies are poised to maintain high growth in the next years," it noted.
"These are good indicators but this does not mean the GCC countries have totally overcome the effects of the crisis... More measures are needed to be taken to stimulate some sectors, mainly those which were affect most by the crisis, such as the real estate sector.
"Tackling these effects will not be easy as it needs strenuous efforts and a long time despite a sharp rise in public spending and expectations that oil prices will remain high next year," the report said.
GCC states have the resources to tackle these problems but the most important thing now is to consider restructuring the real estate sector and extending more support for affected banks and other companies, it noted.
