GCC Economies Expected to Experience Accelerated Growth in 2025 by The World Bank

The Gulf Cooperation Council (GCC) countries are expected to experience a significant recovery in their GDP, with the World Bank forecasting growth of 2.8% in 2024 and 4.7% in 2025. This growth is expected to be driven by an increase in oil production quotas during the second half of 2024, with oil GDP projected to grow by 1.7% this year and 6.9% in 2025. Despite a global economic slowdown, the GCC economy in 2024 is anticipated to heavily rely on oil production and prices.

Non-oil GDP is expected to remain strong, growing by 3.6% in 2024 and 3.5% in the medium term, supported by expansionary fiscal policy, low interest rates, and strong consumption and private investment. Despite efforts to diversify revenues through taxes and fees, oil and gas revenues will continue to play a crucial role in shaping the region’s financial policies, external balances, and financial variables. As a result, the fiscal surplus of the Gulf Cooperation Council countries is expected to shrink in 2024, reaching 0.1% of GDP, while the current account surplus is projected to be 7.5% of GDP.

The ongoing diversification efforts in the region are evident in the performance discrepancies between oil and non-oil sectors

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