IMF says economic growth in GCC to remain subdued
27 December, 2017 | By COLIN FOREMAN
Medium-term growth prospects in the GCC remain subdued amid relatively low oil prices and geopolitical risks, according to a report by the Washington-based IMF issued on 14 December.
The IMF says non-oil GDP growth in the GCC will increase to 2.6 per cent this year, from 1.8 per cent last year, while lower oil output means overall real GDP growth is projected to slow to 0.5 per cent in 2017, from 2.2 per cent in 2016.
Non-oil growth has accelerated as the pace of fiscal consolidation in the region, which was mainly focused on reducing expenditure, slows.
The IMF says countries in the GCC should continue to rationalise recurrent expenditures, conduct further energy price reforms, increase non-oil revenues, and introduce measures to improve the efficiency of capital spending.
Private sector investment will also need to be encouraged to offset lower government spending and maintain growth. The IMF says this requires stepped-up reforms to improve the business climate and reduce the role of the public sector in the economy through privatisation and public-private partnerships.
Globally, the IMF says economic activity is gaining momentum. Global growth is forecast at 3.6 per cent this year, and 3.7 per cent in 2018, compared with 3.2 per cent in 2016. It adds that the more positive global growth environment should support stronger oil demand.
Related Posts
Supply and demand imbalance is resulting in less office space being built and property owners offering tenants generous incentives
Dubai’s office market continues to be oversupplied, resulting in less office space ...
READ MORE
Several project clients across the GCC are expected to imminently appoint transaction advisers for planned railway PPP schemes
The past two years have seen the formation of numerous consortiums between financial, ...
READ MORE
There has been a growing number of bond calls as market conditions for the construction sector deteriorate
The UAE Central Bank says it will not interfere with the growing number of ...
READ MORE
Abu Dhabi's recovery depends on oil prices, while Dubai needs a rebound in aviation and tourism
The UAE had 40,507 Covid-19 infections by 11 June, and although this number continues to ...
READ MORE
Fitch says non-oil economies could decline by 1-5 per cent in the region this year
US ratings agency Fitch forecasts an unprecedented non-oil sector recession in the GCC due to Covid-19.
The ...
READ MORE
Chairman and chief executive of Emirates Airline & Group comments on the challenges facing aviation
Climate change and rising costs are huge challenges for the aviation sector. Responding effectively to them ...
READ MORE
At least eight companies formed consortiums to bid for the scheme’s engineering design contract
Teams comprising consultancy firms have submitted bids for the engineering design contract for the next stages of the 1,200 ...
READ MORE
Middle East and North African banks face a difficult 2021 amid weaker profits and the pending end of liquidity stimulus measures
After an epoch-changing 2020, it may be rash to make ...
READ MORE
Etihad Rail unveils new strategy and brand identity following budget approval and completion of stage 2 network design
Abu Dhabi-based Etihad Rail has completed the network design for stage 2 of the 1,200-kilometre ...
READ MORE
The IMF’s most recent report on the UAE expressed satisfaction with the country’s economic prospects and government policies as the nation emerges from the oil price slump in a strong ...
READ MORE
Oversupply continues to challenge Dubai office market
Region takes small steps towards PPP
UAE Central Bank will not interfere with construction
UAE positions economy for recovery
GCC faces unprecedented non-oil recession
Ten Minutes into the Future of Aviation
EXCLUSIVE: Abu Dhabi receives bids for Etihad railway
Mena lenders trudge into a tougher year
Etihad Rail completes stage 2 design
UAE on the rise with higher oil earnings
27 December, 2017 | .By COLIN FOREMAN
