POLL-Gulf's 2021 rebound likely to be slower than previously forecast | Reuters

POLL-Gulf's 2021 rebound likely to be slower than previously forecast | Reuters

Forecasts for economic recoveries in the six-member Gulf Cooperation Council in 2021 have been trimmed while expectations for gross domestic product declines last year were mixed in a quarterly Reuters survey of analysts released on Tuesday.

Economists in the Jan. 11-25 poll maintained their views that the hydrocarbon-dependent region’s economic fortunes would turn around this year after it was hammered by the pandemic and an historic slide in the price of the GCC’s main commodity.

But growth forecasts for 2021 were cut for all six countries - to varying degrees - with the UAE, Kuwait and Oman’s GDP growth projections scaled back the most. Expected growth in Saudi Arabia and Qatar remained the GCC’s highest.

Saudi Arabia, the region’s largest economy, is expected to see GDP growth of 2.8% this year, down from 3.1% expected three months ago. The median forecast for its GDP contraction in 2020 improved to 4.4% from 5.1%. The economy is expected to grow 3.2% next year and 3.1% in 2023.