HSBC economists positive about economic outlook for Middle East

Muscat: The annual HSBC Economist Roadshow has arrived in the Middle East with an optimistic forecast for the region’s economic outlook in 2023 and expectations that the Gulf nations are on course to deliver some of the strongest growth in the world in 2022.

The HSBC team forecasts economic growth of 6.5 per cent in 2022 for the economies of the Gulf Cooperation Council (GCC), making this one of the strongest-performing regions of the world this year, and delivering their strongest growth in at least a decade.

More than 150 clients and business leaders in Oman attended the presentations made by the HSBC economics team, made up of Simon Williams, Chief Economist, CEEMEA, James Pomeroy, Senior Global Economist and Dominic Bunning, Head of FX Research in Europe.

Melika Betley, CEO, HSBC Oman, said, “We were delighted to host so many friends of HSBC at our Economist Roadshow, our annual showcase event analysing key economic trends globally, regionally and in Oman, that provides our clients with a platform to discuss major economic themes and the implications they have for business and investment.”

The economics team discussed the global and regional trends shaping the Middle East’s economies and their future prospects. The roadshow this year visits Abu Dhabi, Dubai, Kuwait City, Muscat, Doha, Manama and Riyadh.  

Simon Williams said, “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.”

James 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 per cent since this time last year – and if demand for goods dwindles, discounting may come into play.”

Dominic Bunning said, "The key components that have supported USD strength such as the soft global growth dynamics, fragile risk appetite and relatively higher US yields, should continue in the months ahead, in our view.”