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
Latest industry findings report from MEED and Mashreq analyses emerging trends in the UAE's retail sector
Download your copy of the report here
In March 2020, the UAE’s retail industry came to ...
READ MORE
MEED interviews the head of the kingdom’s Renewable Energy Project Development Office
Saudi Arabia’s Renewable Energy Project Development Office (Repdo), which is part of the Ministry of Energy, Industry & Mineral Resources, ...
READ MORE
Rising output from the mammoth Zohr gas field, coupled with ambitions to augment its reserves, have helped Cairo regain its gas exporter status after a five-year hiatus
Italian energy major Eni’s ...
READ MORE
New downloadable report from MEED, in partnership with Mashreq, examines how the region’s oil producers are responding to changing energy demand.
The fundamentals of future energy demand look good for Middle East oil ...
READ MORE
International engineering consultancies are bidding for a 2030 oil and gas masterplan study in Kuwait, according to an industry source.
The winner of the contract will be responsible for looking at ...
READ MORE
Egypt leads value of deals signed
Egypt helped the Middle East record the highest value of deals let to date in 2018, with the country’s $7.8bn of contracts signed forming the ...
READ MORE
The first transition of power in half a century will present a serious test of leadership for Sultan Haitham bin Tariq al-Said
The appointment of Haitham bin Tariq al-Said as the new ...
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
The AED100bn ($27bn) Targeted Economic Support Scheme (Tess) was launched in March
The UAE Central Bank has extended its economic stimulus package until the end of the first half of next ...
READ MORE
With Bahrain’s branding in place and further tourism growth expected, the country is now shifting its focus to new markets
Much is expected from tourism in Bahrain, and the sector has ...
READ MORE
EXCLUSIVE: Saudi Arabia reveals plans for next round
Egypt upstream gas exploration gathers speed
The Future of Middle East Energy
Kuwait considers another new refinery
Middle East contract awards: September 2018
Oman faces up to the challenges of a
Healthcare market assessment of Egypt
UAE central bank extends stimulus package
Bahrain moves to next phase of tourism plan
27 December, 2017 | .By COLIN FOREMAN
