IMF releases optimistic outlook for UAE economy
Date
5/20/2024 5:57:38 AM
(MENAFN) In its latest report released on Monday, the International Monetary Fund (IMF) provided an optimistic outlook for the United Arab Emirates' (UAE) economy, forecasting a robust real gross domestic product (GDP) growth of 4 percent for the current year. This projection comes alongside expectations of maintaining stable inflation rates, with the average inflation rate in the UAE anticipated to remain around the 2 percent mark, a level deemed to be under control.
The IMF underscored the broad-based nature of economic expansion in the UAE, highlighting the notable contributions from key sectors such as tourism, construction, manufacturing, and financial services. Particularly noteworthy was the buoyant foreign demand for real estate in the country, which, coupled with the UAE's reputation as a safe haven and its flourishing bilateral and multilateral relations, has propelled rapid growth in housing prices and rents, further bolstering domestic liquidity.
Furthermore, the report emphasized the positive outlook for fiscal and external balances, citing the relative increase in oil prices as a contributing factor. The IMF also commended the UAE's strides in digitizing its financial system, while stressing the importance of continued efforts to regulate and evaluate the virtual assets industry, urging a vigilant approach to managing associated risks.
In terms of policy recommendations, the IMF advocated for the continuation of the UAE's ambitious structural reform agenda. This entails supporting integrated government strategies, fostering strong governance frameworks, and incentivizing private sector development and green growth initiatives. By adhering to these strategies, the UAE can sustain its economic momentum and navigate evolving global challenges effectively.
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