- Based upon the latest report, it stated out that, Groundwork for local events and expenditure by Saudi Arabia’s Public Investment Fund will power in the progression for the GCC economies.
- As according to the most recent report the ICAEW Economic Update: Middle East, incorporated by Institute of Chartered Accountants in England and Wales and gathered by Oxford Economics, stated that as per the fresh anticipation there are following facts that had been reported: –
- The GCC nations are poised to have a rebound of 2.1 percent that is anticipated to be marginally viz a 0.5 percent upsurged than as per anticipated three months prior this year in 2021, backed by steady, swift upsurge in Oil rates, the easing up of Covid-19 transition restrictions that have now been quite relaxed as well as the expenditure staged in groundwork for foremost events by the native administrations.
- The territories economies are also in an awesome situation to take advantage of on the travel demand when the rest of the world opens up, according to the report.
- Groundwork for numerous local and global events like Expo 2020 Dubai and the 2022 Fifa World Cup in Qatar, and expenditure by Saudi Arabia’s Public Investment Fund will provision progression, it stated out.
Scott Livermore, ICAEW economic adviser and chief economist at Oxford Economics, stated out that; “The rise in the oil price has boosted revenue prospects for GCC producers, which derive 40 per cent to 90 per cent of total fiscal income from oil. Higher oil revenue gives governments more scope to support post-pandemic recoveries without undermining efforts aimed at improving medium-term fiscal sustainability.”
ICAEW regional director for the Middle East, Africa and South Asia, Michael Armstrong, also further stated out that; “The outlook for most Middle Eastern economies looks positive this quarter but keeping coronavirus levels low will be essential to ensure economies can return to growth.”
He also added out that; “Governments across the region must keep developing sectors and industries that foster innovation and continue implementing reforms to diversify economies and accelerate them into the post-Covid era.”
With the Covid-19 pandemic under self-control mode in China, Europe and the US and the travelling tourism season forthcoming, crude demand is swelling, the report stated out that. Oil charges upsurged out for the third consecutive week, with Brent trading at $72.96 while West Texas Intermediate, which follows out the US crude grades, traded at $70.91 as the International Energy Agency identified mounting demand for crude.
However, assumed the “continuously fragile demand outlook and plentiful scope for stronger supply growth, the upside for oil prices will remain limited through 2022 and 2023” and Brent crude is estimated to average $61 a barrel during that time frame, the ICAEW report revealed it out.
In Lebanon, “government formation remains deadlocked and the population is struggling to cope with soaring inflation, fuel shortages and progressively longer power cuts”.
As per a separate report statement, by the Institute of International Finance stated out in March that, the non-oil economies of the six-member GCC are poised out to upsurge by an average of 3.1 percent this year post diminishing by 4.1 percent the preceding year.
The report also added out that; “Meanwhile, the Middle East’s gross domestic product will nurture by 2.4 percent this year, an equivalent rate to the territories average progression trajectory in the preceding decade.”
The intensification in oil budgets, post an Opec+ deal to edge supply, is also projected to assist the economies in the Middle East as they recuperate from the pandemic.
The report projected that the national GDP will however get diminished by 5.3 percent this year, post the preceding year’s 25 percent narrowing. In Iraq, short-term progress scenarios remain passive. However, an upturn in oil production is anticipated to offer some fiscal relief, the report stated out.