Developed European and Key Middle Eastern Economies' Growth Opportunities, 2018-2023

Developed European and Key Middle Eastern Economies' Growth Opportunities, 2018-2023

Persistent Inflationary Pressure and Softening Global Growth to Weigh on Near-term Growth Momentum

Following 2022’s socioeconomic challenges, such as historic price pressure, downbeat consumer sentiments, and the adverse impact of the Russo-Ukrainian War, developed European countries continue to face inflation and subdued growth in 2023. Persistent inflationary pressure, rising fiscal health concerns, and slowing global growth weighing on export performance are key factors likely to affect near-term growth momentum. In addition, monetary policy tightening and high energy and fuel prices continue to impact domestic spending and investments.

The sudden rise in commodity prices in 2022 bolstered the oil economy, boosting the overall performance of the Middle Eastern nations, especially Saudi Arabia and the United Arab Emirates. Elevated oil revenues are being redirected to local industries and essential non-oil sectors, supporting diversification efforts and fostering employment in domestic markets. Amidst an upbeat oil market, these exporters will enjoy steady and buoyant medium-term growth as consumer spending and domestic investments rise.

Country coverage includes developed European and key Middle Eastern economies.

The developed European economies are listed below:

• Austria
• Belgium
• France
• Germany
• Italy
• The Netherlands
• Poland
• Portugal
• Spain
• Switzerland
• The United Kingdom
• Denmark
• Sweden
• Norway
• Finland

The key Middle Eastern economies the study covers are the United Arab Emirates and Saudi Arabia.

Sector coverage includes manufacturing; food and beverage; chemicals; pharmaceuticals; plastic; mining; electricity; construction; agriculture; and healthcare.

Indicator coverage: Real gross domestic product (GDP) growth; private consumption expenditure; household expenditure on food, clothing, and electricity; inflation; business confidence; consumer confidence; composite leading indicator; manufacturing purchasing manager’s index (PMI); composite PMI; construction PMI; services PMI; index of industrial production (IIP); value-add by industry; IIP by industry; healthcare spending; retail sales index; and building permits index

Yearly, quarterly, and monthly coverage includes:
• Yearly data: 2018–2023
• Quarterly data: Q1 2018–Q1 2023 (select indicators)
• Monthly data: January 2018–March 2023 (select indicators)