The Arab Gulf oil producers are expected to slash their combined government deficits to some $80 billion this year from $143 billion last year, thanks to higher oil prices, reopening economies, and fiscal consolidation, S&P Global Ratings said in a report on Wednesday. The total government deficits of the six members of the Gulf Cooperation Council (GCC)—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE)—are expected to drop to 5 percent of gross domestic product (GDP) this year, compared to deficits of 10 percent of GDP in 2020, according to the ratings agency. Despite the expectation of reduced deficits compared to the shock of 2020, deficits will further deteriorate governments’ balance sheets in most cases, S&P Global Ratings said. Many of the GCC countries introduced austerity measures last year to cope with the double shock of collapsing oil prices and economic restrictions due to the pandemic. […]