GCC economic growth expected to slow to 2.5% in 2023 – World Bank

Gulf Cooperation Council’s (GCC) economies expected to grow at a slower pace by 2.5 percent in 2023 compared to 7.3 percent in 2022, weighed by lower energy earnings and a global economic slowdown, the World Bank said on Wednesday.

In its latest World Bank Gulf Economic Update (GEU), the financial institution said the GCC is expected to grow by 3.2 percent in 2024, the world bank statement mentioned.

However, the non-oil sectors which is anticipated to reach 4.6 percent in 2023, will dampen the shortfall in hydrocarbon activities, the statement mentioned.

GDP is forecasted to grow by 2.8 percent in 2023 as oil activity growth declines 2.5 percent. While, a strong non-oil sector growth of 4.8 percent will soften the contraction in oil activities, driven by robust domestic demand on different sectors.

“Many of the GCC countries have already taken impressive steps to address such risk factors, including taxing tobacco products and sugary drinks,” said Issam Abousleiman, World Bank Regional Director for the GCC.

Abousleiman further added that several GCC countries have also set themselves important environmental targets. There is an opportunity to do much more to minimize NCDs and their costs in the future.”