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|18 April, 2019

IMF forecasts UAE's nominal GDP to grow 4.7%

The GDP growth is reflective of the economic diversification efforts made by the country, according to the Washington-based fund.

The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019.

The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019.

Reuters/Yuri Gripas

UAE - The International Monetary Fund (IMF) has forecast the UAE's nominal Gross Domestic Product (GDP) to grow 4.7 per cent to Dh1.673 trillion in 2019, compared to Dh1.589 trillion a year ago.

The GDP growth is reflective of the economic diversification efforts made by the country, according to the Washington-based fund. Driven by remarkable improvement across various economic platforms, including domestic investment and private sector-provided credit, as well as the ongoing momentum in trade relations with major trade partners, and the anticipated high tourist influxes associated with the approaching Expo 2020 Dubai, the UAE economy has survived the slowdown witnessed in 2015-2016.

The growth is also driven by the improvement in average oil prices from $71.9 in 2018 to $72.3 in 2019, according to IMF statistics, which expected a rise in the country's crude output to 3.1 million b/d from 3.00 million b/d in 2018.

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The IMF's positive forecasts are based on the three-year stimulus packages initiated by the Federal Government starting this year, with inflation rates kept as low as 1.9 per cent in 2019 - despite the introduction of Value Added Tax last year - in addition to the eight per cent increase in the current account surplus in 2019 against 6.9 per cent in 2018.

- Wam

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