Media ININ Economy We Trust
Media IN/Dubai/May, 4/ 2019:
According to the latest IMF projections, the UAE economy grew by 1.7 per cent against the October forecast of 2.9 per cent in 2018. The economy is projected to grow 3.3 per cent in 2020 supported by a strong 4 per cent non-oil growth projected for that year.
“Expo 2020–related spending in Dubai and Abu Dhabi’s fiscal stimulus is expected support near-term growth in the UAE,” said Jihad Azour, the IMF’s Mideast and Central Asia department director.
He also said that the economy continued to adjust last year. Corporate consolidation and structural reforms, including in large government-related entities and commercial banks,as well as the fiscal position, weighed on aggregate demand. Given the dollar peg, the dirham appreciated against currencies of major trading partners and interest rates rose in general.
He added: ”Some green shoots are now emerging, with domestic credit growth, employment, and tourist arrivals showing improvement recently, although the real estate sector continues to face an overhang of supply. The economy may now be at a turning point, supported by public spending.”
IMF recommended reducing the footprint of the public sector, leveling the ground with private sector participants to boost productivity growth. Strengthening the enabling environment for SMEs and building on recent reforms to encourage foreign direct investment (FDI) are additional priorities.
