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
Acwa Power highlights need for private investment
Paddy Padmanathan, chief executive of Acwa Power, tells MEED bold action is needed to address the world’s energy challenge
“The biggest challenge we face is ...
READ MORE
Insurers are seeing and can expect a trickle down effect of higher claims and falling new revenue streams from the global slowdown
Click here to download MEED’s Covid-19 insurance sector analysis
Covid-19 ...
READ MORE
Highlights from the fifth Mashreq Construction Club
At the fifth meeting of the Mashreq Construction Club on 12 December 2018 at the JW Marriott Marquis Hotel Dubai, international engineering firm Arup ...
READ MORE
Public sector projects are driving growth, with the most notable progress being made on housing schemes
Contractors working in Kuwait are hoping for the green shoots of recovery in 2019. “There ...
READ MORE
Abu Dhabi’s Supreme Petroleum Council (SPC) has approved plans by Abu Dhabi National Oil Company (Adnoc) for a capital expenditure of more than AED400bn ($108bn) over the next five years, as it moves to ...
READ MORE
Packages range from discounts on electricity and water bills to uninterrupted service in the event of non-payment
GCC states, led by the UAE, have initiated discounting of electricity and water bills across ...
READ MORE
Increased digitalisation and emergence of Islamic products aligned with sustainability themes are opening up new avenues for growth
The global Islamic finance industry is expected to grow to $5.9tn by 2026 ...
READ MORE
UAE Technology Think Tank identifies 18 actions to establish the UAE as a centre of excellence for technology research and innovation
A think tank of senior executives and academics from the ...
READ MORE
The combined value of all projects planned or under way in the five North African countries is about $739bn
The signing on 11 December 2017 of an agreement between Egypt and Russia ...
READ MORE
The Gulf region’s highest-quality projects were announced at the 2018 MEED Projects Awards in association with Mashreq.
“Recognising quality projects is not just about winning an award, but a means by which ...
READ MORE
Ten Minutes into the Future of Energy
Covid-19 impact on insurance markets
CONSTRUCTION CLUB 5: Trends shaping the future of
New projects enter Kuwait’s stagnant building market
Adnoc breaks down $109bn five-year project plan
Islamic finance presents $6tn opportunity
UAE Technology Think Tank recommends ways to enabling
North Africa is a challenging market with huge
Winners of MEED Projects Awards, in association with
27 December, 2017 | .By COLIN FOREMAN
