Gulf economies are expected to grow faster this year than previously thought, thanks to abundant oil production, according to a Reuters poll of economists.
The six Gulf Arab states, namely Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Oman, are running budget surpluses.
The survey expected overall growth in the six Gulf Cooperation Council economies to average 6.2 percent this year, up from 5.9 percent expected in the April poll. This will be the fastest rise in nearly a decade.
But growth is expected to slow to nearly half that pace of 3.8 in 2023. This is slightly higher than the previous survey.
As for inflation expectations in the region, they are modest, but mixed. The rate is expected to hover around 4 percent, with the lowest rate in Saudi Arabia at 2.5 percent, and the highest in Kuwait at 4.8 percent.
These numbers are modest compared to advanced economies, approaching more than 10 percent.