Dubai – “ASWAQ”
The economies of Gulf hydrocarbon producers will grow by around 8% to peak at nearly USD1.6 trillion in current prices this year while real growth is projected at about 3.6 per cent, according to regional forecasts.
Real GDP growth this year, despite global uncertainty, will be a result of strong oil prices and high public spending, which will spur growth in many sectors and encourage the private sector to pump more investment, said the report by the Dammam-based Federation of GCC Chambers of Commerce and Industry.
In its semi-annual report released on Sunday, the federation said any fresh Western financial crisis would have limited effects on the economic and financial system in the six-nation Gulf Cooperation Council on the grounds the regional economy has fully recovered and banks have a strong capital and liquidity base.
“GCC real GDP is expected to grow by 3.6% in 2013 against 5.5% in 2012 despite fears of fresh economic and financial upheavals worldwide,” the report said.