The International Monetary Fund expected that the GDP growth of the Gulf Cooperation Council countries would double, to reach 6.5 percent by the end of 2022, indicating that the rise in commodity prices reduced the indirect effects of the war in Ukraine and the impact resulting from the tightening of global financial conditions and allowed for more expectations. Positive for the economies of the six Gulf countries.
According to the analysis of the report, which was titled: "Economic Prospects and Policy Challenges for the GCC Countries 2022", the GCC countries will provide much more resources than they were during previous periods due to the financial and structural reforms that were taken in the region. The overall fiscal surplus has increased to more than $100 billion, as the increase in expenditures, especially on wages, has so far been contained.
The report shows that while the Gulf countries have benefited from high oil and gas prices, albeit volatile, many risks still hang over the outlook, especially the global economy's slowdown. This is what is required in light of this situation to maintain the reform momentum. The report recommended that medium and long-term challenges should be firmly addressed, by implementing a comprehensive package of policies that includes the use of additional revenues from high oil prices, while prioritizing targeted support for the most vulnerable groups, thus enhancing the progress made in digitization.
Source (Al-Sharq Al-Awsat newspaper, edited)
