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
An improvement in non-hydrocarbon GDP growth is benefiting the sultanate’s construction sector, with $2.4bn of contract awards so far this year and more expected in 2020
Oman’s construction market has endured ...
READ MORE
Arabtec and Trojan have confirmed they may collaborate in the future
After high-profile mergers in the financial, energy and real estate sectors, Abu Dhabi’s consolidation drive is now turning to construction.
On ...
READ MORE
The UAE has scaled up use of mobile health applications due to its relatively modern infrastructure, government initiatives, increased investment and agility of healthcare system. Moreover, the UAE has been ...
READ MORE
Digital technology is transforming the banking industry. But it is being driven by the customer not the technology, says Mashreq Bank’s Subroto Som
Q: How significant is the digital transformation taking ...
READ MORE
If six-month rolling averages are considered then the market has shown signs of bottoming out this year
The total value of construction and transport contract awards in the GCC fell for ...
READ MORE
Procurement in the GCC’s utility sector needs to move away from the current lowest cost bid mentality and towards better system efficiency and demand management
Ask most utility planners what the ...
READ MORE
Economic transformation requires a backbone of physical infrastructure that has to be delivered
It has been a tough three years for construction companies in Saudi Arabia. As oil prices started to ...
READ MORE
Adnoc has been able to close the transaction ahead of the expected closing date in the last quarter of this year
Abu Dhabi National Oil Company (Adnoc) has announced it has ...
READ MORE
Several project clients across the GCC are expected to imminently appoint transaction advisers for planned railway PPP schemes
The past two years have seen the formation of numerous consortiums between financial, ...
READ MORE
The Covid-19 outbreak is expected to have a severe impact on the region’s stellar non-oil economy
In one fell swoop, the spread of the novel coronavirus across the world has laid ...
READ MORE
Oman construction shows signs of recovery
Abu Dhabi’s consolidation efforts turn to construction
Mobile health applications in the UAE
MARKET TALK: Collaboration key to future of banking
GCC construction and transport awards drop again in
Rethinking PPP in power and water
Riyadh’s super contractor plans reflect the demands of
Abu Dhabi closes Adnoc Oil Pipelines infrastructure deal
Region takes small steps towards PPP
Coronavirus crashes down on UAE economy
27 December, 2017 | .By COLIN FOREMAN
