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
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
Contractors have submitted offers for packages B and C of stage 2
Etihad Rail is evaluating bids from contractors for two more construction packages on the UAE’s 1,200-kilometre federal railway.
Firms have submitted bids ...
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
With oil prices starting to firm, lenders from within the region and beyond are coming under pressure to close a looming funding gap facing major projects. In the GCC alone, ...
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
Abu Dhabi has re-engaged with stakeholders for the design and route alignment for the upcoming phases of Etihad Rail, the UAE’s federal railway network.
This includes the rail project’s second stage, ...
READ MORE
Nowadays, regional governments need to find investors to help fund their projects as well as contractors to build them
Much has changed for the GCC’s construction sector over the past five ...
READ MORE
Jacobs wins work for stages 2 and 3 of the UAE’s federal rail network
US-based Jacobs Engineering along with UK company Atkins have been selected for the engineering design contract for stages 2 ...
READ MORE
Etihad Rail received prequalification applications from potential bidders for design and build contracts on stage 2
The UAE Ministry of Finance and the Abu Dhabi Department of Finance have signed an agreement for ...
READ MORE
Investors require a concerted display of political will to engage in the hundred billion dollars-worth of planned PPP projects across the region
Sustained low oil prices between 2015 and 2017 drove ...
READ MORE
Riyadh’s super contractor plans reflect the demands of
Etihad Rail evaluates construction bids
Dubai tops global cities for construction
A new approach to large financings
North Africa is a challenging market with huge
EXCLUSIVE: Abu Dhabi moves on stalled rail project
GCC contracting sees signs of a shake-up
EXCLUSIVE: US firm selected for UAE’s Etihad Rail
Abu Dhabi signs financing deal for Etihad Rail
Finding a regional model for PPP
27 December, 2017 | .By COLIN FOREMAN
