GCC economies to grow faster in 2022 as energy prices recover

GCC economies to grow faster in 2022 as energy prices recover

Despite relatively tight fiscal policy and some external headwinds, Gulf Co -operation Council (GCC) economies are expected to grow at a faster pace in 2022 as energy prices recover. Dubai-based Emirates NBD said the region's economies are set to grow 5.1 percent following 2.3 percent growth in 2021. GDP contracted 4.9 percent in 2020 when the COVID-19 coronavirus pandemic began. "The recovery in the GCC economies gained momentum in the second half of 2021 as travel restrictions eased, tourism rebounded and domestic demand strengthened," the lender's chief economist Khatija Haque said in the report. Regional PMI surveys pointed to an acceleration in non-oil sector growth in the UAE, Saudi Arabia and Qatar, while the OPEC+ agreement to gradually increase oil production from July contributed to a recovery in the oil and gas sectors as well, the lender said. In an earlier report the lender had forecast the UAE headline GDP growth to accelerate to 4.6 percent this year from an estimated 1.9 percent in 2021. Last year GCC countries committed to tighter spending plans and other fiscal reforms that had been introduced in 2020, despite recovery in oil prices. “We expect this approach to continue in 2022. Saudi Arabia, the