Standard Chartered has released its Global Market Outlook for 2025, predicting that the Gulf Cooperation Council (GCC) will continue to demonstrate economic resilience despite global uncertainties. The report suggests that while global growth is expected to slow to 3.1% from 3.2%, the GCC will outperform due to strong non-oil sector growth and strategic investments aimed at economic diversification.
The GCC's emphasis on long-term transformation helps it withstand various global economic challenges. Investments in non-oil sectors and an environment conducive to private-sector growth are anticipated to sustain momentum throughout 2025. Lower interest rates are expected to further support borrowing-sensitive industries in Saudi Arabia, the UAE, and Qatar. Despite regional conflicts affecting broader MENA economies such as Egypt and Lebanon, the GCC remains well-insulated and positioned for steady expansion.
Ayesha Abbas, Managing Director and Head of Affluent and Wealth Solutions at Standard Chartered, commented: “Amid global economic uncertainties, the GCC emerges as a rare bright spot, showcasing its resilience and adaptability. By focusing on economic diversification and leveraging opportunities in non-oil sectors, the region continues to chart a path of sustainable growth.” She also stated: “The GCC’s commitment to transformation has positioned it as a dynamic force in the global economy. With its strategic investments and stable outlook, the GCC is set to play a pivotal role in driving global economic momentum in the year ahead.”
Globally, the economy faces potential impacts from US election outcomes. President-elect Trump’s administration plans significant tariffs on key trading partners like China. These policies may increase inflation in the US with worldwide consequences. Trump’s intentions to end wars in Ukraine and the Middle East could have broad geopolitical effects.
Protectionist trade policies, high interest rates, and geopolitical uncertainties are projected to impact growth negatively. The US economy remains robust due to strong consumption but may see moderated consumer spending due to a softening labor market and slower wage growth in 2025.
In contrast, Europe's largest economies—Germany and France—face recession risks exacerbated by renewed US tariffs on EU exports. Energy costs, weak demand, and international competition pressure Europe's manufacturing sector. The Russia-Ukraine conflict poses additional risks with potential reduced US support increasing burdens on Europe.
China is likely affected by US tariff policies but has implemented stimulus measures aimed at boosting domestic growth into 2025. Should tariffs rise significantly, further stimulus focused on consumption might be necessary.
Across Asia, growth is expected to slow slightly due to monetary tightening but should remain healthy overall.
For more information:
Khaled Abdulla
Director of Communications
Corporate Affairs
United Arab Emirates
M: +971 55 655 7553
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