Muscat: According to the latest edition of the Economic Insight Report, released by Oxford Economics, the overall confidence in the markets is high due to the relaxation in COVID-19 restriction and rapid increase in vaccinated populations.

The report, commissioned by the Institute of Chartered Accountants in England & Wales (ICAEW), states that the middle-east region’s overall GDP is set to rise by 2.4%, this year. It adds that despite the reduction in oil output, the Purchasing Managers’ Index (PMI) point towards a positive trend in the upcoming months.

Commenting on the positive outlook for the region, Michael Armstrong, FCA and ICAEW Regional Director for the Middle East, Africa and South Asia (MEASA), said, “The outlook for most Middle Eastern economies looks positive this quarter, but keeping coronavirus levels low will be essential to ensure economies can return to growth. Governments across the region must keep developing sectors and industries that foster innovation, and continue implementing reforms to diversify economies and accelerate them into the post-Covid era.”

Meanwhile, Scott Livermore – ICAEW Economic Advisor and Chief Economist at Oxford Economics, stated, “The rise in the oil price has boosted revenue prospects for GCC producers, which derive 40-90 per cent of total fiscal income from oil. Higher oil revenue gives governments more scope to support post-pandemic recoveries without undermining efforts aimed at improving medium-term fiscal sustainability. Climate change is a big risk to the economy and society. Without a significantly expanded mitigation effort, the MENA region, which already suffers from climate-related issues like water scarcity, is likely to have major economic consequences that could have pronounced economic impacts by 2050.”