Some economies in the Gulf Co-operation Council region are set to outperform the rest of the emerging market world this year, according to new research.
Capital Economics (CE), the London consultancy, says in its latest analysis of the Middle East that, despite falling oil production as a result of weakening in the global economy, domestic demand in the GCC will more than compensate.
"While hydrocarbon sectors may be a drag on growth, it looks like this is being offset by the strength of domestic demand, buoyed by strong credit growth and fiscal stimulus packages.
"Indeed, we expect the Gulf economies to be outperformers in the emerging world this year," said Neil Shearing, CE's chief emerging markets economist.
The two biggest economies in the region - Saudi Arabia and the UAE - will benefit from "robust" domestic conditions, especially in the non-oil sector.
Read more: http://www.gulfbase.com/news/economies-in-gcc-set-to-outperform/230032
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