Economic Outlook and Policy Challenges for Gulf Cooperation Council Countries: IMF Report December 2023

The GCC region is experiencing strong growth in non-hydrocarbon sectors, thanks to increased domestic demand, higher capital inflows, and the implementation of economic reforms. However, the production of oil, which is influenced by decisions made by OPEC+, is expected to remain low in the near future. Inflation is under control, and current account surpluses are at a high level. The fiscal balances of the GCC countries are healthy, supported by fiscal reforms and high oil prices. It is anticipated that the primary non-oil deficits will decrease to 24 percent of GDP by 2028, as a result of sustained fiscal and structural reforms and controlled expenditures. Nevertheless, the outlook for the region is affected by high global uncertainty.

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