Abu Dhabi – Mubasher: The United Arab Emirates’ real gross domestic product is expected to see 3.3% growth in 2015 and 2016, said a report issued by the International Finance Corporation (IFC).
The rise in oil prices in the last decade, coupled with the UAE’s position as a ‘safe haven’, helped the country build financial and overseas reserves to bolster its economy, according to the report.
Furthermore, the UAE has additional choices to boost its financial status if oil prices continue to decline for a longer period, which include gradual cut in social insurance that constitutes 12% of total public spending, according to the report.
IFC also expects total public spending to retreat by an annual average of 2% in 2015 and 2016, compared with a rise of 15% annually in the period 2004-2014.
