GCC economic growth forecast for 2023 lowered to 1.4% on oil output cuts
The GCC countries are forecast to record economic growth of 1.4% in 2023, down 0.5 percentage points from the last quarter, following the implementation of crude output cuts, the Institute of Chartered Accountants England and Wales (ICAEW) said in its latest Economic Insight report.
On the other hand, GDP growth in the wider Middle East is expected to slow to 1.7% in 2023. However, optimism prevails as the region’s non-oil activity remains robust.
Businesses have reported growth in their customer base and employment, but the positive performance faces challenges due to the impending impact of high-interest rates on consumption and private investment.
Growth in the region’s non-energy sector is witnessing significant resilience, primarily fueled by the tourism-related sectors, with data showing double-digit expansion in transport, storage, accommodation and food services.
The tourism sector is experiencing rapid growth, with Dubai recording a 20% jump in tourist numbers to 8.6 million in Q1 2023.
Saudi Arabia is also witnessing substantial growth, with a 225% surge since Q1 2022. The kingdom is expecting 30 million international tourists next year.
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