Economic Gcc Report

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GCC economic report
February 2013

Regional commentary
Qatar’s economy slowed through 2012, with the pace of expansion falling to just 3.9% in Q3 from 5% in Q2. This slowdown largely reflects the impact of the self-imposed moratorium on LNG expansion, but also the slowdown of growth in oil production. GDP growth is set to remain at these lower levels for the foreseeable future, with activity more dependent on government spending and the non-oil sector. GDP is forecast to grow by 5% in 2013 with broadly flat oil and gas production. A slight upturn to 6% growth is expected in 2014, aided by a modest increase in LNG output and an expected rise in oil prices. Oman’s economy grew by around 5% in 2012, helped by rising oil output (up 4%) and natural gas production (up 8.2%) as well as heavy government spending. For 2013, GDP growth is forecast to slow slightly to 4.6%, reflecting weaker spending growth and a smaller rise in oil output. Government revenues grew by an estimated 26% in 2012 thanks to rising oil and gas earnings. And although state spending rose by nearly as much, the budget surplus rose to around 8% of GDP. Budget plans confirm spending will remain high in 2013, helped also by around US$1bn in GCC funding. However, an expected 6.6% fall in the oil price will dampen revenues, cutting the budget surplus to some 6% of GDP.

Upcoming events: GCC
24 – 27 February 2013 Lord Mayor’s visit to Egypt, Bahrain and Qatar The Rt Hon The Lord Mayor of the City of London, Alderman Roger Gifford, will visit Egypt, Bahrain and Qatar. The accompanying delegation will include members of TheCityUK.

Find out more at www.thecityuk.com

On TheCityUK members’ website
Members can log-in at www.thecityuk.com to access our latest documentation, including: Lord Mayor’s visit to Oman: 12 – 14 January 2013 Here is a formal report of the visit by the Rt Hon The Lord Mayor of the City of London, Alderman Roger Gifford, to Oman.

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