At its annual HSBC Economist Roadshow in Kuwait City recently, the HSBC team forecasts economic growth of 6.5 percent in 2022 for the GCC economies, making it one of the strongest performing regions of the world this year, and delivering their strongest growth in at least a decade.
For 2023, the HSBC team forecasts GCC growth of 5 percent. In Kuwait, a GDP growth of 7.2 percent is forecast for 2022, which dips to 2.6 percent in 2023.
Last week, the IMF had forecast the Middle East and Central Asia to grow at 5 percent this year and decelerate to 3.6 percent in 2023. IMF expected Saudi Arabia, the Arab world’s largest economy, to grow 7.6 percent.
More than 175 clients and business leaders in Kuwait City attended the presentations made by the HSBC economics team, including Simon Williams, chief economist, CEEMEA; James Pomeroy, senior global economist and Dominic Bunning, Head of FX Research in Europe.
Samer Alabed, CEO of HSBC in Kuwait, said: “Our expert economic analysis team always provide actionable insights and perspectives especially in a time when conditions in the global economy are raising many questions about the outlook for growth, inflation and investment,” said.
The roadshow this year visits Abu Dhabi, Dubai, Kuwait City, Muscat, Doha, Manama and Riyadh.
Williams felt domestic demand in the region will be strong and added: “We are seeing growth heading into next year with solid momentum and few signs of imbalances that threaten near-term performance. We are comfortable with the growth outlook which we see driven by ongoing gains in domestic demand.”
Pomeroy said: “Inflation may slow more quickly within the goods sector than elsewhere. Supply chains continue to ease up rapidly – the cost of sending freight from Asia to the US has now fallen by 85 percent since this time last year – and if demand for goods dwindles, discounting may come into play.”
HSBC is the largest international banking organisation in the Middle East, North Africa and Turkey (MENAT), with a presence in nine countries across the region, including Saudi Arabia and the United Arab Emirates. Across MENAT, the bank had assets of $71 billion.
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