December 22, 2022
2 mins read

IMF lauds UAE economy’s quick survival from COVID-19

According to the latest IMF review, the UAE GDP growth is projected to reach above 6 percent in 2022, improving from 3.8 percent in 2021..reports Asian Lite News

The UAE economy has quickly survived the economic impact of the COVID-19, with near-term economic growth being strong, underpinned by a rebound in domestic activity, while elevated oil prices support high surpluses in the fiscal and external balances, according to a top IMF official.

“Economic growth has been robust this year, led by a strong rebound in tourism, construction, and activity related to the Dubai World Expo, as well as higher oil production in line with the OPEC+ production agreements. The economic recovery is gaining momentum driven by return of economic cycle,” Jihad Azour, Director of Middle East and Central Asia Department, International Monetary Fund, said.

According to the latest IMF review, the UAE GDP growth is projected to reach above 6 percent in 2022, improving from 3.8 percent in 2021. Inflation has risen with global trends and is expected to average just over 5 percent this year. Fiscal and external surpluses have increased further, benefiting from the higher oil prices as well as the removal of the temporary COVID-crisis related fiscal support to businesses and households as the pandemic has gradually waned. Increased global uncertainty led to larger financial inflows, contributing to rapid real estate price growth in some segments.

He added that the UAE economic outlook remains positive, supported by domestic activity. “We expect non-hydrocarbon growth to be around 4 percent in 2023 and to accelerate over the medium-term with the implementation of ongoing reforms. Inflationary pressures are projected to moderate gradually, including from the impact of tightening financial conditions. Further development of domestic capital markets, including through the issuance of local currency debt by the federal government will also support growth.”

Photo taken on April 19, 2022 shows the IMF headquarters in Washington, D.C., the United States. (Photo by Ting Shen/Xinhua/IANS)

As to the Middle East and Central Asia, Azour said that economic activity in the region has been resilient thus far, with multispeed recovery continuing in 2022; and “we project that the MENA region to grow at 5 percent this year, up from 4.1 percent in 2021. However, the worsening of global conditions will weigh on the outlook for next year with growth slowing to 3.6 percent. Growth is projected at 5.2 percent this year for the oil exporters, with high oil prices and robust non-oil GDP growth of setting the global headwinds.”

He underlined the importance of stability on the monetary side, on the financial side, and with regard to inflation. “Financial and economic stability is important to enable the investor to increase the level of the investment and the citizen to be able to have purchasing power and to maintain it.”

ALSO READ: Saudi Arabia’s real GDP grows 8.8%

Previous Story

Saudi’s Hassana takes stake in DP World’s UAE assets

Next Story

Iranian, Saudi FMs hold talks at Jordan conference

Latest from -Top News

WHO adopts Global Pandemic Agreement

The agreement seeks to boost international coordination and ensure equitable access to life-saving tools during future pandemics, while reaffirming respect for national sovereignty in public health decisions In a move aimed at

UK-East Africa trade forum to kickstart investment

UK hosts first-ever forum dedicated to trade and investment with East Africa, including announcements on cross-border trade and electric motorbikes The UK has announced two investments in East Africa to de-risk cross-border

First detection of West Nile virus in UK

West Nile Virus is a vector borne disease belonging to the Flaviviridae family, which also includes the viruses that cause dengue and yellow fever A research programme by the UK Health Security
Go toTop

Don't Miss

Dubai Airshow Sees Dh200 Billion Deals in Two Days

On Day two, Sheikh Mohammed bin Rashid Al Maktoum visited

UAE, US Seek to Advance Trade & Investment Ties

Both sides also reinforced the importance of building mutual consensus