The World Bank has forecast that GCC economies will expand by 5.9% by the end of 2022.
The growth will be driven by the region’s recovery from the Covid-19 pandemic and developments in the hydrocarbon market, according to the World Bank.
The most recent issue of its Gulf Economic Update – Achieving Climate Change Pledges cites the broadly successful vaccine rollout across the region as well the easing of restrictions which has helped boost export earnings.
Meanwhile, the rise in energy prices, exacerbated by the war in Ukraine, may also help the GCC region given that it is a major hydrocarbon exporter, at least in the short term.
However, the World Bank also warns that the current energy crisis may have a negative impact for hydrocarbon exporters in the future because it has prompted many countries to accelerate their efforts to move away from the use of fossil fuels.
The World Bank’s optimism was shared by Saudi finance minister Mohammed Al-Jadaan who spoke at the World Economic Forum earlier this month. He described the region’s growth as “very positive” but also warned against treating the GCC as one homogenous bloc.
“What might fit in one country, or challenges faced by one country, might not be the same in another,” he said.
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