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.

Net Zero in UAE Construction

The decarbonisation agenda is reshaping the planning and delivery of projects in the UAE The need to decarbonise sits firmly at the top of the policy agenda in the UAE, which ...

A very different crisis for UAE construction

Although there are parallels with 2009, the market is different in 2020 The 2008 global financial crisis has been a dark cloud in the memory of the UAE’s construction sector for ...

Managing mental health through various mobile applications

Mental health conditions are quite prevalent worldwide, with almost 10% of the global population suffering from a mental disorder[1]. As per WHO, one in four people in the world are ...

Chinese power contractors seize the initiative

There has been a steady decline in the value of work being bid for and awarded to South Korean industry majors The past decade has witnessed a significant shift in the ...

Surging demand opens water investment taps

Increased pressure on the supply of water is resulting in a regional shift towards private finance and the separation of water and power generation facilities Securing adequate water supplies is one ...

Retail banking faces severe trial under Covid-19

Coronavirus outbreak accelerates digital transformation, but also provides a stress-test for financial institutions Click here to download MEED’s Covid-19 retail banking sector analysis Covid-19 and the accompanying period of economic paralysis is leaving ...

Oman faces up to the challenges of a new era

The first transition of power in half a century will present a serious test of leadership for Sultan Haitham bin Tariq al-Said The appointment of Haitham bin Tariq al-Said as the new ...

Airport stake sale will test Saudi Arabia’s resolve

Major reforms required to make aviation sector more competitive While a formal appointment has yet to be made, it appears that US-based Goldman Sachs has been chosen to advise Saudi Arabia’s Civil Aviation ...

Low bidder emerges for Hatta pumped-storage hydroelectric project

Three bids were received for 250MW project on 13 February A consortium of Austria’s Andritz and Strabag submitted the lowest bid of AED1.392bn ($379m) for the planned 250MW Hatta pumped-storage hydro ...

Report: Sustainable Asset Management

Financing the future of real estate and manufacturing in the UAE Download industry report Today’s investors are increasingly seeking opportunities that contribute to sustainable development. This shift in perspective recognises that sustainable ...