GCC annual inflation ranges between 1.06%-3.8% in August, GCC Stat says . . . . . . . . . . . . . . . The level of annual inflation varied among Gulf Cooperation Council countries, with rates ranging between 1.06 percent and 3.08 percent by the year through August, the Statistical Center for Cooperation Council for Arab Countries of the Gulf said. Qatar saw the highest inflation level of 3.8 percent higher than the same period a year earlier while Oman had the lowest level of 1.06 percent. Bahrain, Saudi Arabia, Kuwait and UAE recorded 3.1 percent, 2.8 percent, 2.71 percent and 2.42 percent respectively. In Qatar, the rate edged up 0.7 percent from the year ended July, where the key driver to the rise was a 7.9 percent increase in housing and utility prices, while food and beverages marked 1.2 percent ascent. The rise in Doha property prices has pushed rents to very high levels, where a recent REPORT predicts a 10 percent increase by the end of the current year if the price rally continues. As Qatar prepares to host the 2022 World Cup, the real estate sector is predicted to continue to lead the investments, with the government setting up multi-billion projects such as the real estate project in Lusail City, which will cost almost $45 billion. The problem, however, may evolve as the rise weighs on real estate suppliers due to the low-profit margin and return on the real estate investment, thereby warning of a possible house bubble. While the IMF has retained a robust growth forecast for the GCC nations this year and next, the significant drop in oil and gas prices pose a daunting challenge to governments. On the other hand, Oman posted the lowest increase inflation of 1.06 percent, where the month on month reading showed 0.25 percent increase. Oman signaled the lowest increase in housing and utility prices with a 0.72 percent advance, while the largest pick up was in the prices of furniture and household goods as it climbed 7.24 percent. Food and beverages went up 1.51 percent whilst clothing and footwear prices dropped by 1.19 percent. The latest inflation REPORTS from Oman showed that the annual rate lingered at 0.86 percent in September and retreating by 0.16 percent on the monthly basis. Oman`s economy is projected to grow 3.4 percent in 2014 and 2015, according to the IMF World Economic Outlook REPORT released this month. The persistent drop in oil prices worldwide would cause further widening in Oman’s budget deficit and may prompt the government to borrow or cut its spending. The current year budget deficit may be widened. Financing of long term projects such as the railway project, refineries and airports might be costly and may also affect the government financing of new projects in the near future, Dr. Bashir Ahmad Fida, Professor of Economy at Modern College of BUSINESS and Science, told Times of Oman. #egyptyard
Posted on: Thu, 30 Oct 2014 13:35:44 +0000
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