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
Reduction in activity comes amid fiscal tightening for oil-exporting governments in the wake of the Covid-19 pandemic and lower global oil prices
The GCC has witnessed a noticeable decline in oil ...
READ MORE
Supply chain finance models serve as an optimal way for Middle East’s retail suppliers to gain quicker and more flexible access to working capital
On 10 February, a live webinar hosted ...
READ MORE
Abu Dhabi is capitalising on Khalifa Port’s technology and ambition to win new customers
The expansion of Abu Dhabi’s Khalifa Port is expected to proceed quickly over the next few months. A ...
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
Middle East manufacturers need to decarbonise their operations to be competitive. It is not easy.
Watch the on-demand webinar here
Middle East manufacturers must invest in decarbonising their operations and their supply ...
READ MORE
Besix 3D is already working on a variety of projects for government and private companies
Belgian contractor Besix has opened a 3D concrete printing studio in Dubai to help develop the ...
READ MORE
First steps with PPP projects, management bodies, and Saudisation have been taken this year
Saudi Arabia’s Vision 2030 is a mesmerising document that aims to transform the country by overhauling the ...
READ MORE
The power and water sector remains one of the Middle East and North Africa (Mena) region’s most active project segments, and this is set to continue into 2018, with a number ...
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 Dubai Health Authority (DHA) has been working to make the payment process simpler for hospitals and insurance companies.
In this regard, DHA has started implementing the new insurance payment system, ...
READ MORE
GCC oil and gas project activity sharply declines
Sustaining the supply chain
Abu Dhabi sets out ambitious Khalifa Port expansion
Covid-19 alters technology trends
Net zero challenge for Middle East manufacturers
Besix opens 3D concrete printing studio in Dubai
Saudi construction moves towards Vision 2030
Power and water sector undergoes major reforms
Construction sector adjusts to the new normal
The Rising Importance of Revenue Cycle Management in
27 December, 2017 | .By COLIN FOREMAN
