In partnership with the International Monetary Fund
Gross domestic product growth in Gulf Cooperation Council countries is expected to reach 6.5% in 2022 – more than double the rate of real GDP growth in 2021. Yet geopolitics and economic uncertainty weigh heavily on the global economy. In its latest policy paper on the GCC region, the International Monetary Fund suggests that GCC countries will save more resources during this period of surging commodities prices and remains cautiously optimistic that regional governments can utilize the overall fiscal surpluses for long-term prosperity. However, the IMF stresses that economic reform momentum must be maintained and warns of various headwinds.
Jerome Vacher, one of the authors of the IMF paper, joined AGSIW Senior Resident Scholar Robert Mogielnicki to discuss the key prospects and challenges facing the region as 2023 approaches. Where does the fiscal situation stand for GCC governments? In what areas have economic reforms met with considerable success and where have other reform efforts fallen short? How can reforms and policy decisions help to improve the region’s economic resilience? Beyond volatile energy prices and a slowdown in the global economy, what other factors present headwinds and major risks to regional economies?