GCC economic growth placed at 2.5% in 2023 and 3.2% in 2024

GCC economic growth placed at 2.5% in 2023 and 3.2% in 2024

The GCC region’s economic growth is projected at 2.5% in 2023 and 3.2% in 2024, while Kuwait’s non-oil sector is expected to grow by 4.4% in 2023.

The World Bank expects Kuwait's economic growth to slow to 1.3% in 2023, down from 7.3% in 2022. The decline in oil and gas revenues and the slowdown in global economic activity are the main reasons for the fall in Kuwait’s growth forecast, Kuwait Financial Centre Markaz recently released its Monthly Market Review report for May.

On the positive side for the economy, the World Bank also expects Kuwait’s inflation to decrease to 2.6% in 2023 and the current account surplus to reach 22% of GDP, compared to 26% in 2022.

Markets negative

Regionally, GCC markets were negative in May, with the S&P GCC composite index down 3.1% for the month. The decline was driven by the fall in oil prices, which weighed on investor sentiment. All equity indices, except Dubai and Bahrain, were negative for the month.

Bahrain market rose 3.1% in the month, due to strong Q1 2023 corporate earnings and the positive sentiment surrounding the upcoming listing of Mumtalakat Holding Company. The listing, scheduled for the second half of 2023, is expected to attract foreign