GCC economies are set to grow despite prolonged oil output cuts, thanks to strong non-oil sector expansion, according to the IMF.
🔹 Key Forecasts:
- GCC GDP projected to grow 3% in 2025, 4.1% by 2028
- Saudi Arabia: 3% (2025), 3.7% (2026)
- UAE: 4% (2025), 5% (2026) — highest in the GCC
🔹 Diversification Pays Off:
“Robust non-oil activity helped to offset the negative impact of extended OPEC+ cuts,” said IMF’s Jihad Azour.
🔹 Oil Production & Inflation:
- OPEC+ has cut 5.85M barrels/day since 2022
- Inflation remains within target across most countries
🔹 Risks Ahead:
- Global uncertainty, trade tensions, and climate shocks could slow growth
- IMF warns of 4.5% output loss if current volatility persists
🔹 Policy Priorities:
Azour calls for:
- Strengthened fiscal & monetary frameworks
- Structural reforms & private sector development
- Strategic trade corridors and resilience planning