IMF Staff Country Report-Gulf Cooperation Council: Economic Prospects and Policy Challenges for the GCC Countries

December 14, 2023--Summary:
The GCC region's non-hydrocarbon growth momentum remains strong, driven by higher domestic demand, increased gross capital inflows, and reform implementation. Oil production-which depends on OPEC+ decisions -will be subdued in the near term. Inflation is contained and current account surpluses are high.

Fiscal balances remain healthy, supported by fiscal reforms and high oil prices. The primary non-oil deficits are expected to decrease to 24 percent of GDP by 2028, with higher non-oil revenue reflecting sustained fiscal and structural reforms and contained expenditures. High global uncertainty is weighing on the outlook.