The latest report on economic developments for the Middle East, prepared by "Oxford Economics", showed positive prospects across the region, despite the significant decline in global GDP growth on the back of high inflation and interest rates. GDP growth for the Middle East in 2022 is estimated at 5.5 percent, slightly higher than forecasts announced by Oxford Economics three months ago.
According to the third quarter report, the positive outlook for the Middle East is based on strong expectations of momentum and activity in the economies of the Gulf Cooperation Council countries. GCC GDP is expected to grow by 6.7 percent this year, the fastest rate since 2011, buoyed by rising oil production, repurposing government revenues in investment initiatives, and to a lesser extent, spending by households and businesses. However, the possibility of a global recession and its impact on oil demand remains a major downside risk for this outlook.
According to the report, the rise in oil prices will continue to support public finances and is expected to contribute to achieving a total budget surplus of 9.7 percent of the GDP of the GCC region, the largest since 2012.
Source (Emirati Gulf Newspaper, Edited)
