In its Middle East Growth Outlook report, the World Bank said the Gulf economies, led by Saudi Arabia, recorded their highest annual growth rate in a decade at the end of December last year, thanks to higher energy prices. and an increase in production.
The bank said in its report that the Middle East and North Africa region witnessed a positive year, recording the highest annual growth rate in a decade of 5.7% in 2022, thanks to higher oil and gas prices and higher production. volume.
The GCC countries, led by Saudi Arabia, the UAE and Kuwait, were able to increase their output and exports last year at the fastest rate in almost 10 years, while keeping inflation well below the global average.
The World Bank lowered its growth forecasts for these countries, reflecting an expected slowdown in major trading partners, new cuts in oil production, and the impact of monetary tightening.
He expected Saudi Arabia’s economic growth to slow to 3.7% in 2023 and then to 2.3% in 2024, while the UAE economy will reach 4.1% this year and then slow to 2. 3% next year.
As for Kuwait’s economy, growth is likely to slow to 2.5% this year and 2024, according to the World Bank.
The bank continued: “Oil-importing countries, including Egypt and Morocco, witnessed a significant slowdown in GDP growth in the first half of last year due to higher prices and monetary tightening.”
The bank assumed that growth in Egypt will continue to slow to 4.5% in fiscal year 2022/23 due to inflation, despite continued gains from previous reforms.
The bank expects Morocco’s economic growth to rise to 3.5% in 2023 and 3.7% in 2024 as government spending partially offsets weak consumption, according to the bank’s expectations.
The World Bank has warned of the possibility of new economic downturns and rising poverty levels in developing countries as a result of monetary tightening, increased risks associated with climate change, worsening social tensions and political instability, expecting average growth in per capita income in emerging markets and developing countries, by 2.8% over the next two years, a full percentage point below the 2010-2019 average.
