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
Pandemic quickens construction job cuts
The Covid-19 pandemic is accelerating lay-offs amid a low-oil price environment, but some employers are seeking alternatives Lay-off and redundancy activity has accelerated in the Middle East’s construction sector as it contends with ...
READ MORE
CONNECT SERIES: Keeping construction moving through Covid-19
How the steps taken to get construction through the Covid-19 crisis will lay the foundations for a better industry post crisis Construction companies in the UAE and across the GCC are ...
READ MORE
Dubai seeks contractors for new creek bridge
Crossing is part of Shindagha corridor scheme Dubai’s Roads & Transport Authority (RTA) has invited construction companies to express interest in the deal to build a bridge across the Dubai Creek. The ...
READ MORE
Dubai reviews updated bids for its largest construction tender this year
The contract for substructure works at Al-Maktoum International airport is estimated to be worth $2.7bn Dubai Aviation Engineering Projects (DAEP) is reviewing updated offers for the estimated AED10bn ($2.7bn) substructure contract for Concourse ...
READ MORE
Dubai eyes rare bond issuance
Around $2bn could be issued in Islamic loans and bonds as government lending to Emirates tops AED7.3bn The Dubai government plans to offer bonds and Islamic securities as it contends with ...
READ MORE
CONNECT SERIES: Applicable UAE construction laws amid Covid-19
Alternate legal routes are available to companies that find themselves unable to meet contract commitments due to Covid-19 Findings from Mashreq Construction Club Connect Series episode I On 16 April, the Mashreq ...
READ MORE
Bahrain keeps building as market rebounds
The government has committed to investing in new infrastructure projects Bahrain’s construction market rebounded in 2018 with a total of $2.44bn of contract awards, according to regional projects tracker MEED Projects. The ...
READ MORE
Construction
There are more than $155bn of residential and mixed-use schemes still on hold The decision by Bahrain’s Judicial Committee for the Settlement of Stalled Real Estate Projects plans to auction the ...
READ MORE
Saudi Arabia should be the GCC’s largest construction market
Riyadh has cut capital spending and few new projects outside oil and gas sectors have started in recent years Saudi Arabia should be the GCC’s largest construction market by far. Its ...
READ MORE
Decarbonisation is the next phase for Mena construction
The region’s construction and wider projects market must start incorporating sustainable practices in the planning and delivery of projects As countries around the world commit to reducing their carbon emissions, the ...
READ MORE
Pandemic quickens construction job cuts
CONNECT SERIES: Keeping construction moving through Covid-19
Dubai seeks contractors for new creek bridge
Dubai reviews updated bids for its largest construction
Dubai eyes rare bond issuance
CONNECT SERIES: Applicable UAE construction laws amid Covid-19
Bahrain keeps building as market rebounds
Stalled real estate projects are still an issue
Saudi Arabia should be the GCC’s largest construction
Decarbonisation is the next phase for Mena construction
27 December, 2017 | .By COLIN FOREMAN