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 largest contracts awarded in the GCC during the first half of 2018 have been in Saudi Arabia
The total value of contract awards in the construction and transport sectors increased ...
READ MORE
New report from MEED, in partnership with Mashreq, examines the issues surrounding contracts, and discusses the ways in which contract writing can be improved to support a more sustainable industry
Any investigation ...
READ MORE
A large youth base and a rapidly ageing population with prevalence of chronic diseases are expected to triple healthcare demand in the next 10 years.
Rising prevalence of chronic diseases, ...
READ MORE
The signing of a framework agreement between Abu Dhabi National Oil Company (Adnoc) and China National Petroleum Corporation (CNPC) covering potential offshore oil and sour gas fields is the latest ...
READ MORE
Dubai tops list of 50 cities with total project values amounting to $374.2bn
A total of 6,645 planned and ongoing construction projects by the world’s megacities, valued at $4.2tn and fuelled ...
READ MORE
The speed at which the government has moved to control supply has left construction firms in the emirate wondering where new work will come from
Dubai’s construction sector has been turbocharged ...
READ MORE
Tough times lie ahead for the market as projects are put on hold and developers are forced to lay off staff
Dubai has propped up the UAE’s construction market in recent ...
READ MORE
The third Mashreq Energy Club focused on the rise of renewables in the region
The falling costs of clean energy technologies is driving the shift towards renewable energy across the Middle ...
READ MORE
State oil company targeting five offshore and three onshore fields for high-sulphur gas capacity expansions
Abu Dhabi National Oil Company (Adnoc) is considering the investment of $20bn in developing sour gas ...
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
GCC construction contract awards rebound in 2018
Contracting for a brighter future
Healthcare market assessment of KSA
China strengthens role in region’s energy sector
Dubai tops global cities for construction
Focus turns to infrastructure as Dubai curtails real
Dubai construction stalls as contract awards slow
ENERGY CLUB 3: Renewables on the rise in
Abu Dhabi considering $20bn investment in offshore sour
Mobile health applications in the UAE
27 December, 2017 | .By COLIN FOREMAN
