GCC labour markets absorb shocks
The pandemic, coupled with the oil crisis have inevitably forced MENA countries to slash their budgets. This in turn has prompted layoffs and an outflow of foreign workers from expat-dependent GCC countries. While it presents an opportunity for GCC to accelerate their worker-nationalisation programmes, the rapid departure of foreign labour, including skilled professionals, is expected to slow the post-pandemic recovery in the GCC, at least for the short-to-medium term. This week we analyse:
- The repercussions that lower expat figures have on vulnerable sectors that are highly dependent on foreigners.
- The impact on remittance flows and the pressure on consumer spending.
Florence Eid-Oakden, Ph.D, Chief Economist