GCC economies continue to grow on oil prices

GCC economies continue to grow on oil prices

MUSCAT - The Gulf Cooperation Council (GCC) economies, including the Sultanate of Oman, are predicted to grow due to increasing energy prices (oil and gas) and the impact of the ongoing geopolitical uncertainties.

According to the KPMG’s Global Economic Outlook H1'2022, 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 GCC 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 non-oil sectors and point towards the dip in unemployment rates. Although the average annual inflation is forecast to be restricted in the 2022-23 period, upward price pressures are likely to be propelled by Covid-19 related supply chain disruptions. The GCC governments’ supply chain management strategies, together with the extensive use of foreign labour, exchange rate peg with the US dollar and the GCC fiscal positions emerging from towering international energy prices, are likely to dampen the impact of any potential negative economic shock'', the report said.

For two straight days, the official price of Oman crude for September delivery rose to over $104