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
All new economies will rely on sustainability and digitalisation, Bee’ah group CEO Khaled al-Huraimel tells MEED
Sharjah will be the first city in the Middle East region to reach zero waste ...
READ MORE
The Mena region is expected to be hit harder and recover more slowly in 2021 than the global average in the IMF’s baseline scenario
The Washington-based IMF has projected a GDP growth ...
READ MORE
New strategy has been deployed for the development of the Belbazem oil field
Abu Dhabi has started using a new strategy for dealing with contractors, as it looks to save money ...
READ MORE
Firms need to rethink their approach to winning work as opportunities dry up
The UAE’s contracting community was acutely affected by low liquidity in 2019. Opportunities to win new work are ...
READ MORE
Egypt is one of the most populous countries in the GCCE, with a growing economy.
Combined with factors such as increasing life expectancy, growing prevalence of non-communicable diseases (NCD) and a ...
READ MORE
A look back at the history of attempted PPP projects in the region highlights a catalogue of failures
When looking back on the history of the GCC projects market, we can ...
READ MORE
The Mashreq JLL MEED Healthcare Partnership is a knowledge-sharing initiative that aims to provide a platform for senior healthcare industry executives to discuss and address the challenges facing one of ...
READ MORE
How the steps taken to get construction through the Covid-19 crisis will lay the foundations for a better industry post crisis
Construction companies in the UAE and across the GCC are ...
READ MORE
Minister says innovation is needed if the UAE wants to play a leading role in the global economy
The UAE will have to develop new and innovative infrastructure if it is ...
READ MORE
Dental health is integral to the general health and well-being of the population. Certain lifestyle choices affect dental health such as tobacco use, excessive alcohol use, and poor dietary choices ...
READ MORE
Bee’ah sets sights on digitalisation and renewable energy
Middle East economy to shrink 3.3 per cent
Abu Dhabi looks to new contracting model for
UAE contractors should focus on what they can
Healthcare market assessment of Egypt
Is this the end of public-private partnerships in
Remodelling Healthcare: Mashreq JLL MEED Healthcare Partnership Newsletter
CONNECT SERIES: Keeping construction moving through Covid-19
UAE sets sights on future with innovative infrastructure
Overview of Dental Care Services in the UAE
27 December, 2017 | .By COLIN FOREMAN
