Dubai – Mubasher: The UAE’s economic growth is expected to witness a 3.7% increase in 2019, according to the International Monetary Fund (IMF).
The UAE’s fiscal deficit is expected to remain unchanged at 1.6% of gross domestic product (GDP) during 2018, and return to a surplus, which will exceed 7% of the GCC country’s GDP.
“The UAE economy continues to adjust to a prolonged decline in oil prices since 2014,” Natalia Tamirisa, who led an IMF team mission in the UAE on 16-30 September, said.
The Persian nation’s economy is projecetd to see a growth over the next several years supported by higher oil prices and increased government spending, the Washington-based fund noted.
“Non-oil activity remains subdued amid continued corporate restructuring, real estate overhang, and tightening financial conditions,” Tamirisa added.
The UAE’s overall growth is expected to reach 2.9% and 3.7% in 2018 and 2019, respectively, the IMF said.
Meanwhile, the Middle Eastern country’s inflation is projected to hit 3.5% in this year on the back of introducing the value-added tax (VAT) and is expected to ease afterward.
“Given large fiscal buffers, ample spare capacity, and rising investment needs for Expo 2020, the government has appropriately switched to providing stimulus to the economy,” Tamirisa noted.
