The economy of the Gulf states is slowing down this year due to weak demand for oil

A Archyde.com poll of economists showed that the economies of the six Gulf Cooperation Council countries will grow this year at half the rate of 2022, with oil revenues affected by expectations of a moderate global slowdown.

crude oil prices fell, The main driver of Gulf economiesby more than a third from its highest levels last year, and is expected to remain under pressure this year due to fears of weak demand due to economic recession in major economies.

Overall growth in the six GCC economies is expected to average 3.3% this year and 2.8% next year, according to the survey, which was conducted from January 9-23, down from 4.2% and 3.3% in the poll. Previously in October.

Recently, the World Bank revealed in its report on economic growth prospects for the Middle East region that the economies of the Gulf states, led by Saudi Arabia, recorded the highest annual growth rate in a decade at the end of last December, thanks to higher energy prices and increased production.

The bank stated in its report that the Middle East and North Africa region witnessed a positive year, recording the highest annual growth rate in a decade, amounting to 5.7% in 2022, thanks to the rise in oil and gas prices and the increase in production volume.

The GCC countries, led by Saudi Arabia, the UAE and Kuwait, were able to increase their production and export volume last year at the fastest pace in nearly 10 years, while maintaining inflation rates at levels well below the global average.

The World Bank lowered its growth forecasts for these countries, reflecting the expected slowdown in major trading partners, new cuts in oil production, and the repercussions of tightening monetary policy.

He expected the growth of the Saudi economy to slow down to 3.7% in 2023 and then to 2.3% in 2024, while the UAE economy would record 4.1% this year, then slow to 2.3% next year.

As for Kuwait’s economy, its growth is likely to slow to 2.5% this year and 2024, according to the World Bank.

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