A sustained increase in oil prices over the past two years has driven an economic recovery in the Gulf Cooperation Council (GCC) countries. Economic growth for the GCC region is expected to reach 2% in 2018, up from negative 0.3 % in 2017, thanks in part to higher oil production and a slower pace of fiscal consolidation. However, volatility in oil prices, manifest in recent sharp declines over the past month, and continued heavy dependence on energy sector, underscore the importance of staying the course of structural reforms.