Gulfs GDP to improve in 2020

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MANAMA: The Gulf region’s GDP growth should improve moderately in 2020, up from 1.4 per cent in 2019, according to a Kuwait-based think-tank.

Over the next decade, growth will improve to 2.7pc on average annually, at about the same rate as the global economy but well below the average of 3.5pc for emerging markets, said Bart van Ark, executive vice-president and chief economist at The Conference Board.

Mr Ark was speaking during a seminar yesterday hosted by the Al Baraka Banking Group (ABG) at its headquarters.

The seminar marked the launch of activities in Bahrain by The Conference Board Gulf Centre for Economics and Business Research, which is the Kuwait-based regional office of a global think tank and business membership association.

“The main drag on growth is that slower investment growth is not sufficiently compensated for by improvements in productivity growth. Governments and firms need to combine efforts to put the region’s growth performance on a more sustainable footing by stimulating innovation and improving the efficiency with which labour and capital are deployed in the economy.” .

The launch event in Bahrain was hosted by Adnan Yousif, president and chief executive of ABG, who said, “We often ask ourselves – What lies ahead? Through its research reports, the centre can not only provide answers but also rich insights on the geopolitical and economic developments in one of the most important strategic regions that is of much interest for the great powers in the world.”

“The launch of activities in Bahrain by the centre is a clear expression of the leading role of the kingdom with an aim to provide the kingdom’s decision-makers and the business sector with unique indicators and economic and commercial research for their development and growth,” he said.

Also present at the event were the centre’s advisory board chairman Hisham Al Razzuqi and chief executive Dr Mahdy Aljazzaf, who said its aim is to provide companies with the necessary tools to adapt to an increasingly complex and interdependent global economy.

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