GCC set to outperform developed economies in 2023. Saudi Arabia will Beat India in GDP Growth Rate. Saudi Arabia and the UAE were the fastest growing economies in the region, as they were each able to ramp up oil production by 15% last year, according to Bloomberg estimates. #Economy #SaudiArabia #GCC #India #ZAWYA

"The Gulf region is expected to outperform many developed economies in 2023 despite a slowdown in growth amidst a slower expansion of the energy sector and a weaker external environment. The regional economies had a stellar performance last year, growing at the fastest pace in almost 10 years on the back of an increase in oil production and growth of the non-oil sector. “We estimate GCC real GDP growth at 7.4 per cent in 2022 on a nominal-GDP weighted basis, more than double the growth rate achieved in 2021,” said Khatija Haque, head of research and chief economist at Emirates NBD Research. It said Saudi Arabia and the UAE were the fastest growing economies in the region, as they were each able to ramp up oil production by 15 per cent last year, according to Bloomberg estimates. Haque estimated that GCC non-oil sector economy grew by 5.6 per cent in 2022 as tourism and travel recovered strongly, supporting growth across a range of other services sectors. “Several indicators point to an increase in the population of the UAE, which would also have contributed to stronger domestic demand.” The forecast by the Emirates NBD is in line with the International Monetary Fund’s (IMF) latest regional forecast which projected 3.6 per cent growth in 2023 as against 6.5 per cent last year with the non-oil sector slowing by 0.3 per cent to 3.7 per cent this year. IMF said governments in GCC countries are expected, on average, to save about 33 per cent of oil revenues." Read more.