You are looking at 1 - 1 of 1 items for :

  • Type: Journal Issue x
  • Energy: Demand and Supply; Prices x
  • Microeconomics x
  • Macroeconomics and Monetary Economics x
  • Timor-Leste, Democratic Republic of x
  • Public Economics x
  • National accounts x
  • Yemen, Republic of x
  • Iran, Islamic Republic of x
  • Personal Income, Wealth, and Their Distributions x
  • Finance and accounting x
  • Middle East and Central Asia x
Clear All Modify Search
International Monetary Fund
This paper presents a detailed analysis of the average fiscal policy responses of oil producing countries (OPCs) to the recent oil price cycle. We find that OPCs worsened their non-oil primary balances substantially during 2003-2008 driven by an increase in primary spending. However, this trend was partially reversed when oil prices went down in 2009. We also find evidence that fiscal policy has been procyclical and has hence exacerbated the fluctuations in economic activity. In addition, we estimate that a small reduction in oil prices could lead to very large financing needs in the near future. Finally, we show that long-term fiscal sustainability positions in OPCs have worsened.