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
Adnoc
As oil production cuts boost confidence in the energy sector, Abu Dhabi National Oil Company (Adnoc) is pushing ahead with bullish plans to expand its refining capabilities, add value to ...
READ MORE
Oman construction shows signs of recovery
An improvement in non-hydrocarbon GDP growth is benefiting the sultanate’s construction sector, with $2.4bn of contract awards so far this year and more expected in 2020 Oman’s construction market has endured ...
READ MORE
Opec recognises concept of peak oil demand
Amid a decline in global oil demand due to the Covid-19 pandemic, Opec has, for the first time, placed a date on the likely point of peak oil demand On 13 ...
READ MORE
Saudi Aramco tightens capital expenditure
Aramco’s supply chain community is trying to assess the impact of subdued capital spending in 2020 on their businesses Most analysts had predicted Saudi Aramco would register lower profits in 2019 than the ...
READ MORE
Abu Dhabi to make next solar move
Emirate was finalising the location for its third major solar scheme earlier this year Abu Dhabi’s state utility Emirates Water & Electricity Company (Ewec) could issue the transaction advisory tender for the ...
READ MORE
GCC Overview of Major Healthcare Trends – Annual Newsletter by Mashreq JLL MEED Knowledge Partnership
RESEARCH: GCC HEALTHCARE INDUSTRY The report provides an overview of major healthcare trends as the industry steers out of Covid-19, while highlighting steps towards growth. A large youth base and a rapidly ...
READ MORE
Abu Dhabi closes Adnoc Oil Pipelines infrastructure deal
Adnoc has been able to close the transaction ahead of the expected closing date in the last quarter of this year Abu Dhabi National Oil Company (Adnoc) has announced it has ...
READ MORE
Dashed hopes give way to cautious optimism
Despite initial optimism for 2018, the GCC recorded its worst year in terms of new contract awards since 2004, but 2019 is looking more positive Rising oil prices, bullish government announcements ...
READ MORE
Dubai seeks consultants for first wind power project
Firms sought to conduct feasibility study for a wind project at Hatta State utility Dubai Electricity & Water Authority (Dewa) has invited consultants to submit proposals for the contract to provide ...
READ MORE
Smaller markets lead Gulf index growth
Saudi Arabia and the UAE each shed 0.1 per cent during the week of 8-14 September 2018 Data shows value of projects planned or under way ($bn) Led by Oman, country indices ...
READ MORE
Adnoc eyes diversified growth
Oman construction shows signs of recovery
Opec recognises concept of peak oil demand
Saudi Aramco tightens capital expenditure
Abu Dhabi to make next solar move
GCC Overview of Major Healthcare Trends – Annual
Abu Dhabi closes Adnoc Oil Pipelines infrastructure deal
Dashed hopes give way to cautious optimism
Dubai seeks consultants for first wind power project
Smaller markets lead Gulf index growth
27 December, 2017 | .By COLIN FOREMAN