Gulf Co-operation Council (GCC) economies to grow quicker in 2022 as energy prices recuperate

Posted on February 16, 2022   |  

• The region's economies will grow by 5.1% after 2.3% growth in 2021, in 2020, GDP contracted 4.9% before the pandemic.
• The recovery in the GCC economies gained speed in the 2nd half of 2021 as travel restrictions eased, tourism recovered and domestic demand strengthened.
• There is a high degree of uncertainty related to the Omicron variant, as it is highly transmissible and has caused continued travel restrictions and lockdowns in some countries, mainly in Europe and parts of Asia, which will hinder economic growth.
• The withdrawal of the unusual stimulus injected into the global economy in 2020 can lead to high volatility in financial markets and inhibit growth in the GCC in the form of higher borrowing costs and a stronger US dollar.