MENA set to post fastest growth since 2016

MENA set to post fastest growth since 2016

Amid stark signals of a looming worldwide recession, growth prospects of the GCC countries appear brighter than before with economists at the World Bank predicting a growth of 6.9 per cent in 2022 as oil prices surge.

Economists at the World Bank said in their latest Mena Economic Update that the Middle East and North Africa region’s economies also will grow by 5.5 per cent in 2022, the fastest rate since 2016, and by 3.5 per cent in 2023.

The report identified Saudi Arabia as the primary driver of GCC growth, with a forecast 8.3 per cent growth rate in 2022. Non-oil sectors in the GCC region are also expected to witness growth to varying extents in the coming year — from 2.6 per cent in Oman to 7.7 per cent in Kuwait.

Analysts at FocusEconomics are also upbeat about the Mena region, predicting the region’s GDP growth to accelerate in 2022, as oil exporters benefit from higher average oil quotas and prices. The region’s oil importers, however, will generally lose steam due to higher inflation.

“In 2023, regional growth should ease on cooling hydrocarbon prices and softer oil output growth. Risks include extreme weather, changes to Opec+ quotas, and sociopolitical instability,” Oliver Reynolds,