Economic report: GCC aims at strong growth in 2025

According to Oxford Economics, GCC’s proactive and strategic investment is setting the stage for robust increase

The Gulf Cooperation Council (GCC) region is set for a sharp economic rebound, with growth expected to surge to 4.4% in 2025, more than doubling from projected figures for 2024, according to the latest ICAEW Economic Insight report prepared by Oxford Economics.

The report forecasts that while economic growth in the broader Middle East is set to reach 2.1% in 2024, it will accelerate significantly to 3.7% by 2025.

The GCC’s non-energy sectors, including tourism, trade, and finance, are pivotal in driving this growth, with expectations of a 4.2% expansion in 2024 and 4.4% in 2025.

Scott Livermore, chief economist at Oxford Economics Middle East and ICAEW Economic Advisor, said the region’s strategic investment in non-oil sectors is bolstering resilience. «The GCC’s proactive and strategic investment, combined with a gradual recovery in oil production, is setting the stage for robust growth in 2025,» Livermore said.

Anticipated interest rate cuts are also expected to boost consumption and private investment, enhancing the region’s diversification efforts.