Middle East Business: GCC economies to expand by 5.9% in 2022: World Bank – Gulf Digital News

Middle East Business: GCC economies to expand by 5.9% in 2022: World Bank – Gulf Digital News

The economies of the GCC are projected to expand by 5.9% overall in 2022, with this recovery likely to continue in the medium-term, driven by the hydrocarbon and non-hydrocarbon sectors, said the World Bank in a new report.

The latest issue of the World Bank’s Gulf Economic Update (GEU), “Achieving Climate Change Pledges,” describes them as rebounding robustly from the Covid-19 pandemic in the course of 2021 and at the beginning of 2022.

It attributes the rebound to a broadly successful vaccination rollout across the GCC, the easing of pandemic restrictions, and developments in the hydrocarbon market. As a result, fiscal deficits have markedly improved, with the GCC external balance reaching pre-pandemic levels in 2021 as energy prices and export earnings strengthened.

As major hydrocarbon exporters, GCC countries may also benefit from changes in the energy markets brought about by the war in Ukraine. These countries may see strong fiscal and external surpluses, which could help spur consumer confidence and investments.

However, the war has also placed energy security at the top of the agenda of many major oil importers, thereby accelerating their plans for a transition to green growth, the report said.

The GEU contains a special chapter focusing on critical steps that need