IMF says economic growth in GCC to remain subdued

IMF

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
New projects enter Kuwait’s stagnant building market
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
Mecca mobility strategy award could be game-changer
Imminent award of Mecca mobility strategy contract could be an important development for many stakeholders The award of the Mecca mobility strategy contract, which includes the feasibility study for the first ...
READ MORE
UAE maintains its economic course
Growth holds despite negative inflation and weaker project activity
READ MORE
Dubai contractors look for regulation to counter conspiring market forces
Deteriorating market conditions are threatening the delivery of major projects in the emirate As the trading conditions for construction companies continue to deteriorate, there are growing calls from contractors for more ...
READ MORE
IMF says Qatar has mitigated project delays
Doha has found alternative suppliers of construction materials and equipment The Washington-based IMF says Qatar has mitigated delays to key infrastructure projects caused by the trade embargo that was introduced by ...
READ MORE
A disappointing year for growth in the UAE
The UAE is seeing muted growth in 2017, estimated at less than 1.5 per cent, as low oil prices and production cuts weigh on the economy. The non-hydrocarbons sector is faring ...
READ MORE
Work at Dubai Expo 2020 site keeps contractors busy
Construction work at the Expo 2020 site at Dubai South is steadily progressing The Expo 2020 site’s location on the outskirts of the city means most people living in Dubai do ...
READ MORE
The-Tower-at-Dubai-Creek-Harbour
The tenders for The Tower and the shopping mall at Dubai Creek Harbour evoke memories of 2004, when contractors competed for the deals to build what would become Burj Khalifa ...
READ MORE
Resurgent Abu Dhabi creates new challenges for construction
  The economic stimulus package approved in June has been followed by a flurry of tendering activity Abu Dhabi’s construction sector was given a boost in early June when Crown Prince Sheikh ...
READ MORE
Resurgent Abu Dhabi creates new challenges for construction
The economic stimulus package approved in June has been followed by a flurry of tendering activity Abu Dhabi’s construction sector was given a boost in early June when Crown Prince Sheikh ...
READ MORE
New projects enter Kuwait’s stagnant building market
Mecca mobility strategy award could be game-changer
UAE maintains its economic course
Dubai contractors look for regulation to counter conspiring
IMF says Qatar has mitigated project delays
A disappointing year for growth in the UAE
Work at Dubai Expo 2020 site keeps contractors
Tendering in 2017 reflects tightening margins for developers
Resurgent Abu Dhabi creates new challenges for construction
Resurgent Abu Dhabi creates new challenges for construction
27 December, 2017 | .By COLIN FOREMAN