Economic growth in GCC to more than halve in 2023 – World Bank

Economic growth in GCC to more than halve in 2023 – World Bank

DUBAI - The World Bank has revised its 2023 economic growth projection for the oil exporters of the six-member Gulf Cooperation Council (GCC) downwards to 3.2% in its latest update released on Thursday, from 3.7% forecast in October.

Such a rate would be less than half the 7.3% increase estimated across the six member countries last year.

The report was compiled before surprise oil output cuts announced on Sunday by OPEC+, which have driven up oil prices and price expectations, and the World Bank said its projections do not incorporate any impact from that decision.

An expected decline in oil prices from highs in 2022 is behind the downward revision to growth forecasts, with Saudi Arabia, the world's top crude exporter, forecast to grow by 2.9% in 2023, the sharpest slowdown among the GCC economies, from 8.7% in 2022, and 3.7% projected in October.

Brent crude, the global benchmark oil price, hit a high of $139 in March last year, close to its all-time high. On Thursday it stood around $84.

GCC growth will still outperform the wider Middle East and North Africa region, forecast to grow by 3% in 2023, down from 5.8% growth in 2022, the World Bank said in its outlook.

"Economic growth