The economies of the Gulf Cooperation Council (GCC) are expected to grow at a slower rate in 2023 than in 2022, according to a press release.
The World Bank Gulf Economic Update (GEU) reported that the slower pace is due to lower oil and gas earnings and a global economic slowdown. The GCC is expected to grow by 2.5% in 2023 and 3.2% in 2024, compared to the GDP growth of 7.3% in 2022 caused by increased oil production during that year. However, the non-oil sectors are expected to compensate for the drop in oil sector activities, with a 4.6% expansion in 2023 led by private consumption, fixed instruments and looser fiscal policy.
The GEU's latest issue, "The Health and Economic Burden of Non-Communicable Diseases in the GCC," states that 2023's modest financial growth is supported by the structural reforms made in recent years. Improvement to the business climate and competitiveness, as well as the overall improvements in female labor in the GCC countries, especially in Saudi Arabia, have shown positive results, though the press release adds that further diversification efforts are still needed and are currently in progress. The GEU's issue focuses on how non-communicable diseases (NCDs) have become the leading cause of mortality and morbidity, accounting for approximately 75% of all deaths and disability in the region. Of the deaths and disability, over 80% have been attributed to four main NCD categories: Cardiovascular diseases, diabetes, cancer and respiratory diseases.
"Many of the GCC countries have already taken impressive steps to address such risk factors, including taxing tobacco products and sugary drinks, restricting or banning the advertisement, promotion or sponsorship of tobacco and reducing the amount of salt through reformulation," said GCC World Bank Regional Director Issam Abousleiman. "Several GCC countries have also set themselves important environmental targets. There is an opportunity to do much more to minimize NCDs and their costs in the future."