The GCC achieved a trade volume of $1.5 trillion in 2023, securing its position as the sixth-largest global trader, according to the latest data.
This figure represents 3.4 per cent of global trade, highlighting the region’s growing economic importance. However, the GCC saw a 4pc decline in trade volume compared to 2022, as reported in the 2023 GCC Foreign Trade Report issued by the Statistical Centre for the Co-operation Council for the Arab Countries of the Gulf.
The report also revealed that the GCC ranked third globally in the merchandise trade balance, with a surplus of $163.7 billion in 2023. This marks a sharp drop of 57.1 pc from the previous year’s surplus of $381.3bn.
Despite these challenges, the region’s non-oil sectors have continued to grow, reflecting the GCC’s commitment to economic diversification. Additionally, the International Monetary Fund highlighted that foreign reserves held by GCC central banks are equivalent to approximately 10 months of the region’s import needs.
The IMF further noted that the GCC has established itself as a crucial hub for regional economic growth, aided by its open trade policies, liberal capital flows, and a welcoming approach to foreign labour.
The GCC’s position in global trade was also reinforced by its ranking as the fifth-largest exporter of commodities, contributing 3.1pc of the world’s total. In 2023, the region’s commodity exports were valued at $0.8 trillion, though this marked a 14.5pc decline compared to 2022.
On the flip side, merchandise imports into the GCC increased by 13.4pc to reach $0.7trn, accounting for 2.7pc of global imports.
When excluding intra-GCC trade, total goods trade fell by 4pc, reaching $1.48trn in 2023. The decline was primarily driven by a 14.5pc drop in commodity exports, which decreased from $962.6bn in 2022 to $823.1bn in 2023. Conversely, commodity imports rose by $78bn, reaching $659.3bn in 2023.
A significant decline in oil exports was also recorded. The GCC saw a 20.5pc drop in oil exports, which totalled $525.5bn in 2023, compared to $661.1bn the previous year.
China was the GCC’s largest trading partner in 2023, with total commodity trade valued at $297.9bn, far outpacing India, which ranked second at $150.4bn.
The Asian country also remained the GCC’s top destination for commodity exports, accounting for 19.2pc of the total at $158.3bn, although this represented a 16.8pc drop from 2022.
Moreover, China topped the list of countries supplying merchandise imports to the GCC, contributing 21.2pc of the total imports, valued at $139.6bn, up 10.8pc from $126bn in 2022.
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