The economies of the Gulf Cooperation Council (GCC) countries will grow by 3.6% in 2024 and 3.7% in 2025. This is stated in a World Bank report, Arab News reported on November 22.
A recent World Bank report on the Gulf economies demonstrated this and it will increase over the next two years.
The GCC economy will grow by 1% in 2023, according to the report. This figure is due to lower activity in the oil sector, which is expected to contract by 3.9%, reflecting sequential production cuts by OPEC+ countries and the global economic slowdown.
However, the decline in oil sector activity will be offset by non-oil sectors, which are expected to grow by 3.9% in 2023 and 3.4% in the medium term, supported by resilient private consumption, strategic fixed investment and accommodative fiscal policy.
World Bank Country Director for Gulf States Safaa El-Tayeb El-Kogally said: “To maintain this positive trajectory, GCC countries must continue to implement sound macroeconomic management, remain committed to structural reforms and focus on increasing non-oil exports.”
“However, it is important to recognize the downside risks that remain. The current conflict in the Middle East poses significant risks to the region and the GCC’s prospects, especially if it spreads or involves other regional actors. As a result, global oil markets are already experiencing increased volatility.”he added.
Source: Rossa Primavera
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