Gulf Economy Set to Contract 3.1% in 2026, Citi Says
Dow Jones
6 hours ago
0717 GMT - The Gulf economy is expected to contract by 3.1% this year, reversing growth of 4.5% in 2025, as the regional conflict disrupts oil production and weighs on non-oil activity, Citi Research says. The bank forecasts a 13.7% contraction in oil-sector output, while non-oil growth is expected to slow to 1.0% from 5.1% last year. Citi says the economic impact will vary considerably across the six Gulf states, depending on their access to alternative export routes and exposure to disrupted trade and tourism. Its forecasts assume shipping through the Strait of Hormuz normalizes in the fourth quarter, with prolonged disruptions posing further downside risks.
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