Fitch Solutions expects GCC economy to grow 1.9% in 2023

Fitch Solutions expected on Tuesday that the economy of the Gulf countries will grow by 1.9 percent this year, affected by oil production cuts implemented by several countries in the region as part of an agreement by the OPEC + alliance.

In April, Saudi Arabia, the United Arab Emirates and other producers of the OPEC + alliance announced sudden cuts in oil production exceeding one million barrels per day in an effort to boost the prices.

The slowdown noticed in the Gulf economy growth, which grew by 7.6 percent in 2022, due to rising energy prices last year, said Ramona Mubarak, head of risk management for the Middle East and North Africa region at Fitch Solutions.

“In January, we expected the Gulf economy to grow by 3.4 percent, but as oil prices and production cuts started by some Gulf countries lowered our forecast to 1.9 percent,” Mubarak added.