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
The impact of the health crisis on the region’s economies continues to play out
On 22 March, Dubai-based Emirates airlines announced the shocking news that it was suspending all passenger services for ...
READ MORE
As oil production cuts boost confidence in the energy sector, Abu Dhabi National Oil Company (Adnoc) is pushing ahead with bullish plans to expand its refining capabilities, add value to ...
READ MORE
Partnership will grow to accommodate developments in sectors such as construction and energy
MEED and Mashreq have announced the extension of their knowledge partnership for a third year.
First established in 2017, ...
READ MORE
Faced with tough market conditions, steel producers need greater transparency and a clearer voice if they are to stay strong
Q: How would you describe the structural steel market in the ...
READ MORE
Supply chain disruption will delay new 5G device launches
The Covid-19 pandemic will shrink end-user demand for products powered by semiconductors, but will drive growing demand for biosensors, a new MEED report has found.
Biosensors ...
READ MORE
Recent bond issuances have shown that there is demand from international investors for regional debt
GCC sovereigns continue to issue debt as they combat the economic effects of the Covid-19 pandemic. ...
READ MORE
Understanding specific industries means the Dubai-based bank can understand and address the issues the construction industry faces
MEED: How have Mashreqs operations evolved to meet the needs of the changing market?
Mohammad ...
READ MORE
Sentiment in the GCC’s construction market has improved since 2016
The GCC’s construction sector has adjusted to the new normal of lower oil prices and reduced government spending, according to Pinsent ...
READ MORE
The state-backed Abu Dhabi Company for Onshore Petroleum Operations (Adco) is ready to sign the contract for the Bab Integrated Facilities Project Expansion, one of the largest planned oil and ...
READ MORE
Higher oil prices and fiscal policy adjustments will reduce GCC sovereign funding requirements until 2021
The GCC states’ cumulative funding requirements are accumulating at a slower rate than expected, and are estimated to reach $300bn ...
READ MORE
Surviving the Covid-19 economic crisis
Adnoc eyes diversified growth
MEED and Mashreq renew partnership for third year
MARKET TALK: Steel experts discuss competition
Covid-19 alters technology trends
Appetite for debt will encourage expansionary budgets
MARKET TALK: Sector focus helps Mashreq service clients
Construction sector adjusts to the new normal
Adco ready to sign Bab expansion contract
GCC funding requirements are forecast to slow
27 December, 2017 | .By COLIN FOREMAN
