Gulf economies to grow faster in 2022, oil price fall biggest threat

Gulf economies to grow faster in 2022, oil price fall biggest threat

The economies in the six-member Gulf Cooperation Council will grow at their fastest paces in several years, according to a Reuters poll of economists who cautioned the risk to that outlook was skewed to the downside.

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Crude oil prices, a major driver for Gulf economies, climbed to their highest since 2014 on Wednesday, driven by escalating global political tensions involving major producers including United Arab Emirates and Russia, which could worsen already tight supplies.

That is bullish news for the six wealthy oil-exporting countries in the region.

The Jan. 11-19 poll of 25 economists forecast all six economies in the Gulf Cooperation Council would grow faster this year than was expected three months ago.

Saudi Arabia was predicted to top the list with growth of 5.7 percent, followed by Kuwait and UAE with 5.3 percent and 4.8 percent respectively.

Economic growth in Qatar, Oman and Bahrain was expected to average between 3 percent-4 percent for 2022. If realized, that would be the best these countries have witnessed in several years.

“Despite relatively tight fiscal policy, and some external headwinds, we expect the GCC economies to see faster growth in 2022 as they continue