The GCC region’s economy is expected to expand by 5.4 per cent in 2012 driven by increasing oil production and firm crude prices, according to UK-based bank Barclays.

This would represent the slowest rate since crisis-hit 2009, with the six-country region recording real GDP growth of 7.5 per cent last year and 5.5 per cent in 2010.

The bank expects the region’s three largest oil producers, Saudi Arabia, the UAE and Kuwait, to increase crude production by 9.9, 2.8 and 2.8 million barrels a day (b/d) respectively this year.

The region’s collective fiscal and current account surpluses were forecast to increase to 13% and 22.2% of GDP respectively. This compares to 11% and 21.6% in 2011.

Headquartered in Riyadh, the Gulf Cooperation Council was formed in 1981 to coordinate economic integration in the region. Its members are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.