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
The case for environmental sustainability in the GCC
GCC governments have the chance to turn the region into a sustainability pioneer by regarding sustainable solutions as an opportunity rather than a cost Environmental sustainability is becoming the norm around ...
READ MORE
Building Future Cities
  Why the Gulf is set to lead the world in urban planning development and management One of the most significant long-term trends around the world is the movement of the human ...
READ MORE
Official confirms Etihad Rail stage 2 tender release
UAE minister confirms restarting preparations for the second stage of 1,200-kilometre railway network UAE Infrastructure Development Minister Abdulla Belhaif al-Nuaimi has confirmed that Etihad Railway, the federal railway authority, is seeking ...
READ MORE
Dubai said to halt new project spending
Government departments reportedly asked to value-engineer ongoing schemes and hold off on new projects Dubai’s Department of Finance ordered a 50 per cent cut in capital spending and asked to delay ...
READ MORE
MARKET TALK: Steel experts discuss competition
Faced with tough market conditions, steel producers need greater transparency and a clearer voice if they are to stay strong Q: How would you describe the structural steel market in the ...
READ MORE
Finding a regional model for PPP
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
UAE contractors should focus on what they can control
Firms need to rethink their approach to winning work as opportunities dry up The UAE’s contracting community was acutely affected by low liquidity in 2019. Opportunities to win new work are ...
READ MORE
UAE Construction Think Tank recommends adoption of standardised contracts
Standardised construction contracts in the UAE could help to tackle delays and cost overruns on projects UAE construction sector significantly impacted by Covid-19 pandemic Construction industry think tank outlines 26 ...
READ MORE
Etihad Rail completes stage 2 design
Etihad Rail unveils new strategy and brand identity following budget approval and completion of stage 2 network design Abu Dhabi-based Etihad Rail has completed the network design for stage 2 of the 1,200-kilometre ...
READ MORE
Mixed forecast for airport projects
Airport projects are continuing in spite of Covid-19, but the outlook for schemes under tender is now clouded with uncertainty While Covid-19 has challenged the outlook for upcoming airport projects, the ...
READ MORE
The case for environmental sustainability in the GCC
Building Future Cities
Official confirms Etihad Rail stage 2 tender release
Dubai said to halt new project spending
MARKET TALK: Steel experts discuss competition
Finding a regional model for PPP
UAE contractors should focus on what they can
UAE Construction Think Tank recommends adoption of standardised
Etihad Rail completes stage 2 design
Mixed forecast for airport projects
27 December, 2017 | .By COLIN FOREMAN