GCC outlook more upbeat than global prospects

GCC outlook more upbeat than global prospects

The outlook for the GCC region in 2024 is more optimistic in comparison to the rest of the world, supported by the reversal of oil production cuts, still strong international oil prices and growth in the non-oil economy, analysts at a global professional services network said.

The moderation of inflation and the central banks' decision to ease monetary policy from the second half of the year will continue to add to this growth, while the tourism sector is also expected to see continued expansion, particularly in Saudi Arabia, analysts at PwC said in a report.

In contrast to a bleak global growth outlook, the GCC states are poised to effectively navigate through a decelerating global economy, “aided by a loosening of Opec+ oil production quotas, relatively strong growth in key Asian markets including in India (6.3 per cent real GDP growth), and China (4.2 per cent), and continued government investment in the economy in line with the economic diversification goals.” As a result, GDP growth in 2024 is expected to strengthen at 3.7 per cent.

“While the region may not be entirely shielded from a global economic deceleration, there are several reasons for cautious optimism,” analysts said.

The effects of tighter monetary policy to