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The coronavirus outbreak in China could increase risk for the GCC countries if it is not contained in the first quarter, according to ratings agency S&P.
“We expect the impact will be limited assuming the virus will be contained by March 2020, allowing travel and other restrictions to be unwound in the second quarter, and there is no major impact in oil prices,” Mohamed Damac, S&P primary credit analyst said.
China contributes between 4 percent and 45 percent of GCC total goods trade with Oman being the most exposed, the S&P analyst said.
He said virus-related travel restrictions, if not lifted, could weigh on the GCC’s hospitality industry, but more so in Dubai, which received almost 1 million visitors from China in 2019.
(Reporting by Seban Scaria; Editing by Anoop Menon)
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