The World Bank Group expected that the oil-exporting countries, including the Gulf Cooperation Council, will achieve an economic recovery during 2022 due to the rise in oil prices and the increase in production, revealing its estimates that Kuwait is likely to register an economic growth of 5.3 percent this year.
The economic outlook for the oil-producing countries came within broader expectations that included the Middle East and North Africa region, in a report entitled “Global Economic Prospects”.
The report suggested an acceleration of growth in the countries of the region during 2022 before returning to slowdown next year, amid a discrepancy in economic performance among the countries of the region for several factors, most notably the severity of the “Corona” pandemic, and whether the country is an oil exporter or importer of it.
The report said that economic growth in the Middle East and North Africa “will accelerate to 4.4 percent in 2022 before declining to 3.4 percent in 2023.”
He expected that the likely acceleration in the current year will result from the recovery of sectors, which require a high level of communication between people, and the decline in oil production cuts and the support generated by the momentum of the accommodative policy environment in general.
He suggested that the rise in oil and natural gas prices and the increase in production would benefit energy exporters, pointing to expectations that the oil sector in Saudi Arabia would witness a strong recovery that would raise exports, while the activities of the non-oil sectors might benefit from the high rates of vaccination against the “Corona” virus and the acceleration of investment rates.
The report stated that the region witnessed “a strong economic recovery in the second half of 2021, which led to the return of production to the pre-pandemic level in some economies,” noting that “economic performance was uneven across the region due to differences in the severity and effects of the pandemic.”
According to the forecasts for the Middle East and North Africa, Kuwait is likely to register “5.3 percent growth in 2022 and 3 percent in 2023”, and Saudi Arabia will record “4.9 percent growth in 2022 and 2.3 percent in 2023”, and the UAE will achieve The rate is “4.6 percent in 2022 and 2.9 percent in 2023.