World Bank Revises GCC Economic Growth Outlook: Anticipates 4.7% Rebound in 2025

UAE, 30 May, 2024 : The World Bank has adjusted its economic growth forecast for the Gulf Cooperation Council (GCC) region, anticipating a growth rate of 4.7% in 2025, up from the previous estimate of 3.8% published in April.

However, this year's growth projection has been revised downward to 2.8%, from the previous estimate of 3.6%, as shared in the Spring 2024 Gulf Economic Update (GEU) of the World Bank.

The report, released on Wednesday, highlights that despite the current year's challenges, the regional outlook remains positive. The expected rebound in the GCC's economy is attributed to the anticipated recovery in oil output and the strength of the non-oil economy.

The report indicates that members of the OPEC+ alliance are expected to gradually ease production restrictions in the latter half of the year. Additionally, the non-oil sector is projected to sustain robust growth over the medium term.

Fiscal surplus in the region is anticipated to narrow in 2024, reaching 0.1% of GDP, while the current account surplus is expected to decline to 7.5% of GDP, compared to 8.4% in 2022.

As previously forecasted by the World Bank, the report predicts that the UAE's real GDP will accelerate to 3.9% this year, while Saudi Arabia is expected to achieve a growth rate of 2.5% in 2024 and 5.9% in 2025.

Source : www.zawya.com