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
Contractors warns that firms do not have the resources to support the development of a large number of projects at one time
Public-private partnership (PPP) projects around the world face a ...
READ MORE
With almost 3GW of capacity expiring in the Gulf in 2021 and 2022, experts weigh in on developers’ options
Contracted capacities for some of the earliest independent power producer (IPP) and ...
READ MORE
Project is estimated to be worth $500m-$600m
International contractors have submitted technical bids for the engineering, procurement and construction (EPC) contract for the second phase of the Qusahwira oil field development, ...
READ MORE
Natural gas production maintains steady incline
Middle East producers are boosting natural gas output to meet rising energy demand
About $33.5bn-worth of gas exploration and production projects are under execution across the ...
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
With the political will to use the public-private partnership model and the bureaucratic infrastructure in place, the outlook for PPPs is positive in the UAE
Outside the power and water sectors, ...
READ MORE
Construction think tank recommends 15 actions for a more productive and sustainable construction industry in the UAE
Addressing the barriers to growth facing the UAE’s construction industry, the UAE Construction Think ...
READ MORE
Continued investment in transport infrastructure will see the UAE’s spending focus shift to rail and airport projects
The UAE’s status as a global travel and logistics hub is underpinned by 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
There are more than $155bn of residential and mixed-use schemes still on hold
The decision by Bahrain’s Judicial Committee for the Settlement of Stalled Real Estate Projects plans to auction the ...
READ MORE
PPP projects face contracting bottleneck
Next steps for earliest independent utilities projects
Contractors submit bids on Abu Dhabi oil development
BRIEFING PAPER: The Quest for Gas
UAE on the rise with higher oil earnings
PPPs expected to take off in UAE
UAE Construction Think Tank recommends actions to improve
UAE takes steps to maintain global hub status
Covid-19 alters technology trends
Stalled real estate projects are still an issue
27 December, 2017 | .By COLIN FOREMAN
