Dubai-Mubasher: The UAE’s real economic growth is likely to moderate to 2.5% year-on-year (y-o-y), according to a report released by the National Bank of Kuwait (NBK).
On another note, the UAE’s Economy Minister Sultan bin Saeed Al Mansouri expected the UAE’s gross domestic product (GDP) to grow by 3-3.5% in 2016.
The UAE’s fiscal balance is expected to see a deficit of 3.2% of GDP in 2016, amid the steady spending levels and lower oil earnings.
The UAE economy will not need to carry out significant fiscal consolidation in the medium-term due to its abundant financial reserve, the report noted.
The property market has been negatively affected by a stronger dirham currency against key emerging market currencies.
Dubai’s property market is going through a significant correction, the statement said, adding that the measures that were put in place have helped lead the market in the right direction.
