Gulf to see slower pace of growth in 2023 on lower oil revenues

Gulf to see slower pace of growth in 2023 on lower oil revenues

Gulf Cooperation Council (GCC) economies will grow at a much slower pace in 2023 than last year as expectations for muted gains in crude prices and oil production cuts take a toll on revenues, a Reuters poll found.Oil prices have spiked nearly 20 percent since they hit this year’s low of about $70 a barrel on March 20, largely driven by the Organization of Petroleum Exporting Countries (OPEC+) decision to reduce oil output by about 1.16 million barrels per day and China’s reopening.

For the latest headlines, follow our Google News channel online or via the app.But further gains will largely be subdued over the coming months on slower global demand -- not good news for the bloc which is heavily dependent on oil.Saudi Arabia, the world’s largest oil producer, will expand 3.2 percent this year, less than half 2022’s decade-high pace of 8.7 percent, according to the April 6-25 Reuters poll of 16 economists.The growth rate was expected to be the same next year.“Oil output cuts will drive a sharp slowdown in GDP growth in Saudi Arabia this year...In the rest of the Gulf, the double whammy of lower oil production and oil prices will impact upon both oil and