GCC Countries Poised for $2.5 Trillion Economic Surge in Next Decade

GCC Countries Poised for $2.5 Trillion Economic Surge in Next Decade

By Staff Writer, 19 February 2024

A groundbreaking study has unveiled the potential for Gulf Cooperation Council (GCC) countries to inject over $2.5 trillion into the region's GDP within the next ten years by enhancing productivity performance.

Currently at a growth rate of 3.8 percent, this figure could soar to 5.4 percent over the coming decade, paving the way for unprecedented economic expansion and prosperity.

The key lies in strategically elevating productivity performance through the innovative utilization of the Productivity Potential Index (PPI), which identifies and addresses the weakest links hindering productivity.

This transformative potential was underscored in the study titled 'In search of productivity: The next $50 trillion global economy,' a collaboration between the World Governments Summit and Strategy& Middle East.

Chadi Moujaes, a partner at Strategy& within the PwC network, emphasized the profound impact such advancements could have on the region.

"The potential boost to GCC economic growth from a better understanding of the determinants of productivity is impressive and if its findings are acted upon, this could substantially improve the lives of people in the region over the next decade," Moujaes stated.

The study advocates for governments to leverage this research to pinpoint areas where they can make significant strides in productivity and economic growth.

Dima Sayess, partner and Ideation Center lead at Strategy&, highlighted the importance of adopting tools that holistically measure economic progress.

"At a time when the world is looking to become more sustainable, it is essential to have appropriate tools for measuring economic progress that take into account criteria such as the environment and biodiversity, along with a range of social capital measurements," Sayess remarked. "This new index fills an important gap."

The report's findings align with the projections outlined in the Gulf Investment Report 2023, published by Century International Holdings.

It posits that the GCC could evolve into a global economic juggernaut, with the combined GDP of its six member nations reaching $13 trillion by 2050, doubling from a projected $6 trillion.

Embracing a green growth strategy is touted as the catalyst for such exponential growth, according to the research report.

Source: Issac John / Khaleej Times

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