According to the latest report from the World Bank on Global Economic Prospects, the real GDP of the UAE is anticipated to increase by 3.4% in 2023, with further growth to 3.7% in 2024 and 3.8% in 2025.
The report also predicts growth for Gulf Cooperation Council (GCC) countries, foreseeing an increase to 3.6% in 2024 and 3.8% in 2025, driven by the robust performance of the non-oil sector in the previous year.
However, the report notes a slowdown in growth for oil importers last year due to sluggish private sector activity. It anticipates an improvement to 3.2% in 2024 and 3.7% in 2025.
GCC Growth Projections: Saudi Arabia Hits 4.1% in 2024
In terms of specific GCC nations, Saudi Arabia’s growth is expected to reach 4.1% this year, rising to 4.2% next year. Kuwait’s economy is projected to grow by 2.6% this year, increasing to 2.7% next year, while Bahrain is expected to see growth of 3.3% in 2024 and 3.2% in 2025.
Qatar’s economy is forecasted to grow by 2.5% this year, with an increase to 3.1% next year, and Oman is projected to experience growth of 2.7% in 2024 and 2.9% in 2025.
The report highlights a slowdown in the growth rate of the Middle East and North Africa region to 1.9% in 2023, attributed to various challenges, including oil production cuts, elevated inflation, and weak private sector activity in oil-importing economies. The World Bank anticipates a recovery with a growth rate of 3.5% in 2024 and 2025.
On a global scale, the World Bank projects a third consecutive year of slowed growth, from 2.6% in the previous year to 2.4% in 2024. Developing economies are expected to grow by 3.9%, over one percentage point below the previous decade’s average.
Low-income countries are projected to grow by 5.5%, weaker than earlier expectations, and by the end of 2024, a significant portion of developing and low-income countries may still face economic challenges compared to pre-Covid-19 levels in 2019.
Advanced economies are also expected to experience a slowdown, with growth decreasing from 1.5% in 2023 to 1.2% in the current year, according to Gulf Business.
