Middle East will see GDP growth of 5.2% despite economic pressures – ICAEW

Middle East will see GDP growth of 5.2% despite economic pressures – ICAEW

The Middle East will see gdp growth of 5.2 percent in 2022, according to a report - an increase of one percent compared to forecasts three months ago.

The report by the chartered accountants’ professional body ICAEW said there was a positive regional landscape despite market pressures mounting and heightened uncertainty.

Middle Eastern countries are having to adjust to pressure stemming from the ongoing Russia-Ukraine war as well as the Chinese economic slowdown and tightening global market conditions, the report said.

However, rising oil prices have provided support to the macroeconomic environment across the Gulf, which is being used to offset the impact of rising inflation and supply chain disruptions to regional commodity importing countries.

“That being said, a scenario in which several large economies slide into recession would weigh on oil demand and test the gcc’s resilience,” the report said.

Oil price growth has led to improved GDP growth prospects in Saudi Arabia, where output is forecast to expand by 7.1 percent, the report said, compared to four percent previously.

There is also optimism in the uae, where government reform agendas and a rise in oil output are expected to underpin growth of 6.7 percent this year.

All six GCC nations will likely post budget surpluses,