IMF upgrades 2023 non-oil GDP growth forecast for GCC to 4.2%

The International Monetary Fund (IMF) raised its forecast for the 2023 growth of the non-oil economy of Gulf countries from 3.7% to 4.2%, according to its Regional Economic Outlook report for May 2023.

Meanwhile, the fund lowered its estimate for growth of the GCC economies from 3.6% to 2.9% in 2023, against its expectations last October.

“Headline and core inflation in many oil-exporting countries (Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia) remain relatively lower than elsewhere — as subsidies and caps on certain products, the strengthening of the US dollar (to which many of the countries peg their currencies), and limited share of food in the consumer price index basket have helped to offset imported inflationary pressures,” the IMF wrote.