GCC and Egypt economic outlook Hinges on continued reforms
Saturday, 08 03 2019, Category: Economy, Country: Middle East
The GCC and Egypt’s economic growth and public finances improved in 2018 amid higher oil prices, infrastructure development, diversification programs and fiscal reform.
According to research published by the National Bank of Kuwait (NBK), solid growth is expected in the coming period, while sensitivity to oil prices remains a significant downside risk to the GCC.
Egypt has seen significant progress on the macroeconomic front, but deep structural reforms are needed to enhance private sector role in the economy and spur growth.
NBK Group Chief Economist, Dr. Saade Chami, commented:
“The GCC non-oil economy has seen general improvements. Higher energy prices, expansive public investments and private sector stimulus programs have spearheaded output gains. Looking forward, across the region governments will need to strike a balance between the need for fiscal sustainability and boosting non-oil private sector growth.”
Global macroeconomic forces including lower oil demand and possibly lower oil prices as a result of trade disputes, are likely to have an adverse impact on the region, an impact that could partially be compensated by the expected reduction in US interest rates and consequently in most GCC countries. Further efforts towards diversification and continued progress in fiscal, private sector and regulatory reforms will be needed in the medium term.
Source: Al Bawaba