The World Bank Group commends the efforts of the State of Kuwait in the economic development
WASHINGTON-- The World Bank Group on Tuesday projected Kuwait's growth rate at 5.3 percent in 2022 before decelerating to 3.0 percent in 2023.
The economic outlook of the producing oil countries as part of wide expectations that include the Middle East and North Africa (MENA) region, according to a WB report.
The WB forecast that the oil-rich countries, including GCC states, would post an economic recovery in 2022 due to the rise on oil prices and output, the report said.
The MENA region experienced a strong economic recovery in the second half of 2021, bringing output back to its pre-pandemic level in some economies, it added.
Economic performance has been uneven across the region because of differences in the severity and effects of the pandemic.
As contact-intensive sectors recover and oil production cuts wane and supported by tailwinds of a generally accommodative policy environment, growth in MENA is forecast to accelerate to 4.4 percent in 2022 to 3.4 percent in 2023, the report stated.
The gap in average per capita income between MENA and advanced economies is projected to widen during the forecast horizon, however.
Higher oil and natural gas prices and increased production are expected to benefit energy exporters.
Saudi Arabia's oil sector is forecast to rebound strongly, boosting exports, while non-oil activity should benefit from high vaccination rates and accelerating investment.
According to the forecasts for the Middle East and North Africa, Saudi Arabia is forecast to hit 4.9 percent growth in 2022 and 2.3 percent in 2023, while the UAE is likely to post 4.6 percent in 2022 and 2.9 percent in 2023.
The economic growth is forecast to hit 4.8 percent in 2022 and 4.9 percent in 2023 in Qatar, 3.2 percent in 2022 and 2.9 percent in 2023 in Bahrain, and 3.4 percent in 2022 and 4.1 percent in 2023 in Oman, the report said.