The report further states that the GCC region’s non-oil growth is expected to reach 4.2% next year, with PMIs laying positive grounds for domestic activity and foreign orders.

“We have made only minor changes to our global outlook and expect the recent period of stable global growth to extend into 2025,” ICAEW said in a statement. 

While the report expects global GDP growth at 2.7% both this year and the next, at a regional level, it expects the Middle East’s GDP to grow 2.1% this year and 3.7 percent in 2025.

“We expect the GCC energy sectors to drive regional growth in 2025-26 as countries gradually increase production,” ICAEW added.

Moreover, the ICAEW lowered its forecast for 2024 inflation in the GCC by 0.5% to 1.7% this year. Despite this, it still predicts that inflation in the GCC will rise to 2.1% in 2025.

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