Dubai: The International Monetary Fund (IMF) has projected a 1.5 per cent gross domestic product (GDP) growth in 2010 for the UAE with a strong outlook for current account balances in its latest regional economic outlook.
“We have been conservative in our growth projections for the UAE. This is the base case scenario. Going forward we expect the economy to grow at a much faster pace,” IMF Middle East and Central Asia Director Masoud Ahmad.
The IMF has forecast GDP to grow 3.1 per cent in 2011 with the overall econ-omic recovery picking pace in the second half of this year.
The IMF report said that the non-oil segment of the economy was quick to recover last year from the impact of the global financial crisis. With oil prices gaining, the UAE is projected to post a current account surplus of $19.7 billion in 2010 against a deficit of $7 billion last year.
“We expect the Abu Dhabi economy to grow 3.4 per cent this year. As for Dubai we expect the economy to contract by 0.5 per cent this year. Clearly, the clarity on Dubai World’s debt-restructuring is going to have its upside on Dubai’s growth prospects,” Ahmad said. [Read More]
