UAE Business: Mideast growth to hit 5.2% despite global pressures – Gulf Digital News

UAE Business: Mideast growth to hit 5.2% despite global pressures – Gulf Digital News

The Middle East GDP growth in 2022 is now projected at 5.2% despite a darkening global landscape as market pressures mount and uncertainty heightens, says a new report.

The latest Economic Insight report for the Middle East, commissioned by ICAEW and compiled by Oxford Economics, sees an increase in growth of 1 percentage point on Oxford Economics’ forecast three months ago.

According to the report for Q2, Middle Eastern countries are having to adjust to pressures stemming from the ongoing Russia-Ukraine conflict, China’s economic slowdown and the tightening of global market conditions. However, the rise in oil prices has provided strong support to the macroeconomic environment across the Gulf, which is being used to offset the impact of rising inflation and supply chain disruptions to regional commodity importing countries.

That being said, a scenario in which several large economies slide into recession would weigh on oil demand and test the GCC’s resilience, warns the report.

Inflated oil prices have led to improved GDP growth prospects in Saudi Arabia, where the economy is forecast to expand by 7.1%, compared to 4% previously. There is also optimism in the UAE, where government reform agendas and a rise in oil output are expected to underpin growth of