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
Privatisation targets and demand drivers are prompting new market opportunities in the kingdom for private players and healthcare investors
Improving access to quality healthcare and building world-class infrastructure forms a ...
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
Mashreq CEO says customers can expect a transformation in the way they do their banking
The banking sector is on the cusp of a robotics revolution that is set to transform ...
READ MORE
How a robust outlook for global oil demand is triggering exploration and production in the region
In spite of the downside risk for oil prices, there is therefore an ongoing need ...
READ MORE
Former CEO Abdul Aziz al-Ghurair has been appointed as new chairman of board of directors
Dubai-based bank Mashreq has appointed Ahmed Mohamed Abdelaal (pictured above) as its new CEO, replacing previous ...
READ MORE
Surge in activity has come amid increased gas production
Egypt’s petrochemical projects market has more than doubled in less than four years, with the value of active projects in the sector ...
READ MORE
Localisation will create barriers to entry and move the market away from awarding work to lowest priced bidders
Abu Dhabi’s move to introduce the in-country value (ICV) programme into sectors outside ...
READ MORE
Contracts cover work on the Al-Ain Road and a bridge taking Al-Khail Road over a new canal
The Roads & Transport Authority (RTA) has retendered two road construction contracts in Dubai.
The ...
READ MORE
With just over a year to go until Dubai Expo 2020 opens its doors to the world, the site is rapidly approaching its final form
The build up at the Expo ...
READ MORE
16-Jul-2017
Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for the first half ending 30th June 2017.
READ MORE
Saudi healthcare primed for investment
The Rising Importance of Revenue Cycle Management in
EXCLUSIVE: Robots set to transform GCC banking
Ushering in a new oil era
Egypt’s petrochemical projects market triples in value
In-country value could positively transform construction in the
Dubai retenders two road construction contracts
Expo site preparations enter home stretch
Mashreq’s Quarterly Financial update
27 December, 2017 | .By COLIN FOREMAN
