GCC to post ‘modest’ economic recovery in 2021-2023: SP

GCC to post ‘modest’ economic recovery in 2021-2023: SP

“We expect a broad recovery across hydrocarbon and non-hydrocarbon sectors over the period to 2023. Our base assumption is that OPEC+ production cuts, amounting to about 17 percent of October 2018 production, end in April 2022,” the ratings agency said.“These assumptions are based on our view that widespread availability of effective immunization against the coronavirus could come by the middle of next year,” it added.Economies across the region have been impacted by the coronavirus pandemic, with economic activity slowing down amid declines in travel and tourism, as well as low oil prices and OPEC production cuts.UAE outlookIn the UAE, declines in Abu Dhabi's oil activity and Dubai's tourism are expected to stunt growth.Dubai's economy, in particular, is expected to post a sharp contraction this year, owing partly to the fall in visitor arrivals, but S&P said that the delayed Expo 2020, which will now take place in October 2021, should provide a platform for a recovery in activity.S&P said Dubai's GDP will recover to 2019 levels only by 2023.The latest data gathered over the last few weeks by other sources, however, showed that demand for travel to the UAE is picking up on the back of a series of reforms