Photo used for illustrative purpose.
The GIO report, written by the bank’s industry experts, examines the current global economic and investment environment, providing insights into key macroeconomic trends.
FAB’s outlook notes that the GCC region continues to be supported by strong growth in non-oil GDP, with 3.4 per cent expected in the medium term as countries in the region continue to diversify their economies. In financial markets, FAB recommends investors diversify the asset allocation in their portfolios as market and economic volatility looks likely to continue in 2024 and build a defensive portfolio to provide flexibility.
The report points out tailwinds such as higher fiscal spending, rapid disinflation and a tight labour market so far supporting consumption and spending and lifting global equity markets but notes a delayed impact of monetary policy decisions could soon take effect until interest rates and inflation come down.