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International Monetary Fund. Middle East and Central Asia Dept.
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Gulf Cooperation Council

Economic Prospects and Policy Challenges for the GCC Countries -2022

Prepared by Staff of the International Monetary Fund

INTERNATIONAL MONETARY FUND

*The views expressed herein are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its member countries.

Contents

  • EXECUTIVE SUMMARY

  • A. Global Developments and Outlook

  • B. The Economic and Financial Outlook in the GCC Countries

  • C. Policy Priorities

  • D. Concluding Remarks

  • BOXES

  • 1. Oil and Gas Market Developments

  • 2. Impact of the Russian Invasion of Ukraine on the GCC

  • 3. Food Security and the GCC

  • 4. Corporate Sector Vulnerabilities in the GCC

  • 5. Digital Transformation in the GCC

  • FIGURES

  • 1. Global PMIs and GDP Growth

  • 2. Fertilizer and Food Price Indices

  • 3. Global Supply Chain Pressure Index

  • 4. Global Financial Conditions Indices

  • 5. Crude Oil Production

  • 6. Real GDP Growth, 2014–2023

  • 7. Real Non-Oil GDP Growth, 2018–2022

  • 8. High-Frequency Indicators

  • 9. Monthly Inflation

  • 10. Food CPI Weight, Food Imports Share of Total Imports and Dependency on Russia-Ukraine Imports

  • 11. Labor Statistics

  • 12. Fiscal Developments

  • 13. Difference of Primary Balance Between 2021 April and 2022 April WEO Projections for 2022–26

  • 14. Credit to the Private Sector

  • 15. Stock Market Indices

  • 16. Financial Soundness Indicators

  • 17. Selected Corporate Sector Indicators

  • 18. Policy Rates

  • 19. Current Account and Net Foreign Assets

  • 20. Share of Oil Exports to Total Exports and REER

  • 21. US Financial Condition Index and Oil Prices

  • 22. Spreads and Capital Flows

  • 23. Oil Price Projections Under Net-Zero 2050

  • 24. Energy Subsidies

  • 25. Effective Exchange Rates, 2019–2022

  • 26. Diversification Index

  • 28. Average Trade Centrality Indicator Relative to EM Average

  • 27. Value of GCC Exports Within GCC

  • TABLES

  • 1. Population Fully Vaccinated for Covid-19

  • 2. Selected Economic Indicators

  • APPENDICES

  • I. GCC’s Fiscal Policy Responses to Hydrocarbon Windfalls: Past and Present

  • II. Inflation Dynamics in the GCC

  • III. Impact of U.S. Monetary Policy Decisions on the GCC Economy and the Banking Sector

  • Collapse
  • Expand
Gulf Cooperation Council: Economic Prospects and Policy Challenges for the GCC Countries
Author:
International Monetary Fund. Middle East and Central Asia Dept.