Soaring international energy prices to drive GCC economic growth further

Soaring international energy prices to drive GCC economic growth further

- Decline in unemployment to continue with extensive use of foreign workers enabling flexibility in the labor market

- Non-GCC countries anticipated to face challenges in the form of rising domestic inflation; GCC upward price pressures contained

Notwithstanding the dip in global growth prospects and rising inflationary pressures, KPMG’s Global Economic Outlook H1’2022 mentioned that the economies in the Gulf Co-operation Council — Bahrain, Kuwait, Oman, Saudi Arabia, the United Arab Emirates, and Qatar, are predicted to grow. Contributing to this climb are the increasing energy prices (oil and gas) and the ramifications of the ongoing geopolitical uncertainties.

The first publication of this two-part bi-annual report sheds light on the progress pertaining to pressing global issues of H1’2022 and offers comprehensive forecasts and analyses from the perspective of KPMG’s analysts all over the world.

Here are some of the key findings that surfaced from the report:

The oil and gas prices are expected to continue soaring in 2022 and 2023, driven by their increased production and hike in prices. Moreover, the economic activity in the region is expected to pick up further pace owing to the private sector activity and easing of COVID-19-related restrictions. These trends are likely to support the growth in oil and