Forecasts brighten for Gulf GDPs

Gulf economies will fare better than expected this year if oil sustains its rally for the rest of the year, creating an extra US$114 billion (Dh418.64bn) windfall for the region.

Some regional economists are considering upgrading their GDP forecasts if oil maintains its gains and budget surpluses are bigger than expected.

“I have upgraded my forecast because oil at $60 a barrel will allow Saudi Arabia to cross the $400bn mark in terms of the size of its economy, which will grow rather than contract to the extent we expected initially,” said Dr John Sfakianakis, the chief economist at SABB, the bank based in Riyadh.