(MENAFN) The UAE's Minister for Financial Affairs, Mohamed Hadi Al Hussaini, has forecasted a fall in inflation to 3.2 percent by the end of 2023, down from 4.8 percent in the previous year. This prediction is based on price stabilization and the receding impacts of imported inflation globally. Al Hussaini shared this forecast during a meeting held on the sidelines of the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund. He also noted that the UAE's economic forecasts remain positive, with a growth projection of 3.9 percent by the end of this year.
Despite the positive economic outlook, Al Hussaini acknowledged that many countries in the region are still vulnerable to elevated global uncertainties. He also highlighted the role of rents and salaries in contributing to this trend locally. These concerns are further emphasized in the IMF Background Note, which underscores the need for regional collaboration efforts and cooperation with the Fund.
The forecasted fall in inflation is a positive development for the UAE's economy, as it will help to stabilize prices and increase consumer confidence. This, in turn, could lead to increased consumer spending and economic growth. The positive economic growth projection for this year is also a promising sign, indicating that the UAE's economy is on track to recover from the impacts of the COVID-19 pandemic.
However, the region's vulnerability to global uncertainties and the impact of rents and salaries on inflation highlight the need for continued collaboration and cooperation among countries in the region. Collaborative efforts can help to mitigate the impact of global uncertainties and promote economic stability and growth. The collaboration with the IMF can also provide valuable support and guidance for countries in the region as they work to strengthen their economies and navigate the challenges of the global economic landscape.
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