Saudi Arabia’s GDP Expected to Grow by 2.5% in 2024
In a promising outlook, Saudi Arabia’s real gross domestic product is projected to grow by 2.5 percent in 2024, driven by robust non-oil private activities set to increase by 4.8 percent.
GCC Economic Growth Predicted to Rebound
The Gulf Cooperation Council region is expected to see economic growth rebound to 2.8 percent in 2024 and further to 4.7 percent in 2025, according to the Spring 2024 Gulf Economic Update by the World Bank.
Oil GDP in GCC to Surge in 2025
As oil production quotas are gradually lifted in the second half of 2024, oil GDP in the GCC is forecasted to grow by 1.7 percent this year and accelerate to 6.9 percent in 2025.
Non-Oil Sector to Drive Growth
Non-oil GDP in the GCC is expected to maintain its strength, expanding by 3.6 percent in 2024 and 3.5 percent in the medium term, supported by fiscal policies, lower interest rates, and robust private consumption and investment.
Efforts to Diversify Economy Paying Off
Safaa El-Tayeb El-Kogali, World Bank’s country director for GCC, highlighted the successful efforts to reform and diversify the economy in the region, leading to strong growth in the non-oil sector.
Challenges Faced in 2023
While the GCC region experienced economic slowdown in 2023 due to cuts in oil production and global uncertainties, the outlook for 2024 and 2025 looks more promising.
Impact of Global Factors on Oil Prices
The World Bank official emphasized the importance of oil prices in defining the growth prospects for the GCC region, noting uncertainties related to geopolitical tensions and global economic growth.
Factors Affecting Energy Market Outlook
Various factors such as geopolitical tensions, compliance with production quotas, and global economic conditions will influence energy market outlook, posing challenges and opportunities for the region.
Impact of China’s Growth on Global Economy
Weaker-than-expected growth in China could have significant implications on global economic activity, adding to the complexities of the evolving economic landscape.