GCC: 2027 recovery is a diversification opportunity
The GCC is set for a strong economic recovery in 2027, with growth in key sectors and increased government spending amid ongoing geopolitical challenges.
The Gulf Cooperation Council (GCC) is poised for a significant recovery in 2027, with a projected real GDP growth of 6.8%, rebounding from a 5.4% decline this year. This recovery is crucial for restoring international confidence in the region following the impacts of ongoing geopolitical tensions.
Key sectors, particularly non-oil economies, are expected to gain momentum, although tourism may lag behind. Inflation pressures are anticipated to ease, with the GCC Consumer Price Index forecasted to rise by 1.8% in 2027, down from 2.2% this year. The hydrocarbon sector is also set to rebound, with growth of 21.7% contributing significantly to overall GDP.
As policymakers focus on security and diversification, government spending is projected to increase by 5.1% in 2027, with a notable rise in defence expenditure. Investments in alternative export routes and infrastructure are expected to minimise disruptions caused by regional conflicts.
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