A recent study has projected a significant economic boom in the Gulf Cooperation Council (GCC) countries, with the potential to boost the region’s GDP by over $2.5 trillion in the next decade. The study anticipates a growth rate increase from the current 3.8% to 5.4% over the next 10 years, driven by improvements in productivity performance.
Productivity Potential Index: A Game-Changer in Economic Growth
The study, titled ‘In search of productivity: The next $50 trillion global economy,’ emphasizes the importance of leveraging the Productivity Potential Index (PPI) to identify and address key determinants of productivity effectively. By enhancing productivity performance, the GCC countries aim to transform their economic trajectory and enhance the quality of life for residents.
Redefining Productivity Metrics for Sustainable Growth
The report highlights the need for a paradigm shift in measuring productivity, advocating for a holistic approach that includes factors like social and natural capital alongside traditional metrics. The introduction of the PPI offers policymakers and stakeholders a comprehensive framework to evaluate and enhance productivity across various criteria.
Charting a Sustainable Economic Future for the GCC
The Gulf Investment Report 2023 suggests that embracing a green growth strategy could double the combined GDP of the six GCC countries to $13 trillion by 2050. By investing in green and sustainable projects, the GCC aims to emerge as a global economic powerhouse and pioneer innovative solutions to global challenges.
