RIYADH: The Gulf Cooperation Council economy is forecast to rebound 8.1 percent in 2027 after contracting 2.4 percent in 2026, as regional energy exports, tourism and investor confidence gradually normalize following conflict-related disruptions, a new analysis showed.
The forecast, published by the Institute of Chartered Accountants in England and Wales in partnership with Oxford Economics, assumes an interim agreement between the US and Iran evolves into a lasting settlement, allowing traffic through the Strait of Hormuz to normalize and reducing the risk of a sharp oil-price shock.
The report marks a significant downgrade from forecasts issued before the conflict.
Middle East gross domestic product is now projected to contract 4.1 percent in 2026, compared with a 3.6 percent expansion forecast previously.
Kuwait, Iran, Iraq and Qatar are expected to be among the hardest-hit economies due to shipping disruptions, infrastructure damage and tourism losses, according to the report.
