For the Gulf Cooperation Council (GCC) region, the Japanese financial group has cut growth expectations to 1.7% from a previous 2.5%, MUFG said.

It said the Middle East will be impacted because of slowing Chinese energy demand, slowing tourism flows, disruptions to supply chains affecting trade, and lower oil prices.

(Reporting by Davide Barbuscia; Editing by Toby Chopra)