GCC anticipates threefold economic growth surge fueled by diversification

Posted on November 24, 2023   |  

GCC's economy is gearing up for accelerated growth in the next 2 years with ongoing diversification efforts.

Forecasts indicate 1% growth in 2023, followed by a rebound to 3.6% and 3.7% in 2024 and 2025.

The non-oil sector is expected to thrive, with a projected growth of 3.9% in 2023 and sustained expansion at 3.4% in the medium term.

The oil economy is likely to contract by 3.9%, impacted by OPEC+ output cuts, a global economic slowdown, and tightening monetary policy.

The prolonged Israel-Gaza conflict raises global economic concerns; diplomatic efforts persist, with over 14,000 casualties reported.

Initially, oil prices rose due to the conflict but fell in subsequent weeks amid rising demand concerns and central banks tightening monetary policy.

Saudi Arabia's GDP is set to shrink by 0.5% in 2023, with a rebound to 4.1% in 2024. The oil sector is expected to contract by 8.4%, while the non-oil sector is poised for 4.3% growth.