Growth Opportunities in Developed European and Key Middle Eastern Economies: Economic Tracker, 2018–2022

European economies had a challenging 2022 due to the onset of the Russo-Ukrainian War and the heightened inflationary pressure. The war impacted national security and weighed heavily on regional companies' economic performance. Historic price levels mandated monetary policy tightening as energy and fuel prices reduced consumer spending. Moreover, raw material costs shot up due to supply chain disruptions, which led to thin profit margins for manufacturers across industries. As a result, Europe is forecast to contract 0.5% in 2023, with major economies, such as Germany and the United Kingdom, anticipated to witness negative growth rates of 1.0% and 1.5%, respectively. Commodity price levels rose rapidly in 2022 despite the Russo-Ukrainian War. Hence, a buoyant oil economy has benefitted the Middle Eastern nations, especially Saudi Arabia and the United Arab Emirates, two of the largest oil producers in OPEC. Elevated oil revenue, steady fiscal support, and relatively lower price pressure, compared to global standards, will support domestic investments and consumer spending in these economies, building a resilient medium-term growth scenario for the oil-exporting behemoths. Country coverage includes developed European and key Middle Eastern economies. Developed European Economies: • Austria • Belgium • France • Germany • Italy • The Netherlands • Poland • Portugal • Spain • Switzerland • The United Kingdom • Denmark • Sweden • Norway • Finland Key Middle Eastern Economies: • The United Arab Emirates • Saudi Arabia Sector coverage includes manufacturing; food and beverage; chemicals; pharmaceuticals; plastic; mining; electricity; construction; agriculture; and healthcare. Indicator coverage includes real 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; service PMI, index of industrial production (IIP); value-add by industry; IIP by industry; healthcare spending; retail sales index; building permit index; and number of buildings/dwellings. Yearly, quarterly, and monthly coverage includes: • Yearly data: 2018–2022 • Quarterly data: Q1 2018–Q4 2022 (select indicators) • Monthly data: January 2018–December 2022 (select indicators)