With a global recession expected for early next year, oil production cuts and rising borrowing costs, the 2023 GDP growth in the Middle East is expected to see a decline, says a report.
The latest Economic Insight report for the Middle East, commissioned by ICAEW and compiled by Oxford Economics, says the region is likely to see a growth of 2.7% next year.
However, the regional growth is still expected to perform at over twice the pace of the world economy, it said.
According to the Q4 report, the downgrade reflects more muted projections for activity in the GCC economies, where growth is set to moderate to 2.5% in 2023, as oil production stagnates. While this represents a significant slowdown, it will remain above the average pace in the five years preceding the pandemic.
The Middle East has so far withstood global challenges, mainly due to GCC countries’ ongoing gains from trade. However, against a worsening global backdrop -…
