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The recent bilateral free trade agreement with Asian partners, supported by strong oil exports, will push the UAE’s current account surplus to 11.2 percent of GDP in 2022, the report said. However, the bank expects real GDP to slow to 4.1% in 2023, as slowing global demand is likely to dampen growth due to tighter financial conditions.
According to the GEU, the Gulf Cooperation Council (GCC) economy is expected to grow by 6.9% in 2022 before slowing to 3.7% and 2.4% in 2023 and 2024.
“The easing of pandemic restrictions and positive developments in the hydrocarbon market drive a strong recovery across the GCC in 2021 and 2022. A strong economic recovery and supply chain bottlenecks push GCC inflation higher into 2021 average of 2.1%”, up from 0.8% in 2020. “
The report goes on to say that the GCC region “is expected to post a strong double surplus in 2022 and continue in the medium term, supported by rising hydrocarbon prices. The region’s fiscal balance is expected to reach 5.3% of GDP in 2022. surplus – the first since 2014 – while the external balance of payments surplus is expected to reach 17.2% of GDP.”
“This is a fantastic and timely opportunity to leverage green growth strategies to further diversify the economy and play a leading role in the global transition to a low-carbon economy,” said Issam Abousleiman, Regional Director, Gulf Cooperation Council, World Bank. “The region The green growth transition can be leveraged to reverse productivity trends and enable the region to grow faster by focusing policy on developing green technologies and the associated skilled workforce.”
According to the report, the total GDP of the GCC countries is expected to approach $2 trillion in 2022.
“If the GCC continue to operate as usual, their combined GDP will grow to an expected $6 trillion by 2050. However, if GCC countries implement green growth strategies that help and accelerate the diversification of their economies , GDP may have the potential to grow to more than $13 trillion by 2050.”
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