According to a quarterly study done by Reuters, the Gulf Cooperation Council’s six economies are predicted to rebound and rise by 2 to 3% this year.
The two largest economies in the area, Saudi Arabia and the United Arab Emirates are predicted to rise by more than 4% next year, according to the study.
These forecasts follow steep drops last year as a result of the drop in oil prices and the impact of the Covid-19 epidemic, while experts anticipated Saudi Arabia, the United Arab Emirates, and Kuwait to gain from the OPEC + deal to enhance oil output.
“Our main assumption was that a long-term agreement would be reached, and we raised our forecasts for 2022 as a result of baseline adjustments that will allow the UAE, Kuwait, and Saudi Arabia to increase oil production and global market shares starting in May 2022,” said Monica Malik, ADCB’s chief economist. “
The study, which took place from July 5 to 26, predicted that Saudi Arabia’s economy will increase by 2.3 percent on average this year, slightly less than the 2.4 percent predicted in a comparable poll three months earlier.
According to the survey, the largest economy in the Middle East and the world’s top oil exporter would expand at a rate of 4.3 percent in 2022, an increase of 100 basis points. The growth forecast for 2023 has been raised by 30 basis points to 3.3 percent.
After accounting for a 60 basis point and ten basis point rise, the UAE economy is anticipated to grow by 2.3 percent this year, unchanged from the previous projection, 4.2 percent next year, and 3.4 percent in 2023.
Kuwait’s GDP growth prediction for 2021 has been raised by 60 basis points to 2.4 percent, while growth projections for the following year have been raised by 110 basis points to 4.6 percent. In 2023, growth is anticipated to rise by ten percentage points to 3%.
Qatar’s growth estimate for this year has been lowered to 2.5 percent, down 30 basis points. The growth projection for next year remained unchanged at 3.6 percent, but the forecast for 2023 was reduced by 40 basis points to 2.7 percent.
Oman’s growth estimate was raised by 20 basis points to 2.1 percent this year, followed by a ten-basis-point increase to 3.3 percent the next year, and a 20-basis-point dip to 2.2 percent in 2023.
Bahrain’s GDP projection for this year and next year remained unchanged at 2.9 percent, but the growth forecast for 2023 was cut by 30 points to 2.4 percent.