Abu Dhabi: A delegation of the International Monetary Fund (IMF) to the UAE has projected a 3.6 per cent growth in the country’s gross domestic product (GDP) this year, the Ministry of Finance said in a statement on Sunday.
The UAE’s economic growth will be driven by investments, trade, tourism and logistics support, the ministry said, citing the IMF delegation’s report. The delegation’s meetings with the UAE government were held from April 30 to May 15.
“This growth is expected to rise to 3.7 per cent in 2014 and 3.8 per cent in 2015,” the report predicted.
Commenting on the IMF report, Obaid Humaid Al Tayer, Minister of State for Financial Affairs, said: “The Ministry of Finance believes in the importance of maintaining relations with other organisations and the international financial community due to the positive effect this has on the economic and financial system in the UAE and in strengthening its position on the world map and attract investments.”
He added: “The final report of the IMF gave away a clear picture of the UAE’s economy. In fact, the report highlighted a notable recovery from the financial crises that engulfed the world, where the economy is actually witnessing strong growth which guarantees a solid business environment for investors that is supported by legislations able to support it and to aid it in achieving more growth.”
In March, Minister of Economy Sultan Bin Saeed Al Mansouri said the country’s economy is expected to sustain an annual growth rate above 4 per cent in 2013. In May, the minister said the UAE’s GDP will touch $395 billion this year, before growing further to $410 billion next year.
According to the IMF delegation’s report, the UAE’s non-oil growth is expected to be 4.3 per cent this year.
“This is to be supported by a recovery in construction and real estate as well as ongoing growth in tourism- oriented sectors with an expansion of hydrocarbon production by 5.2 per cent,” it added.
The report projected an increase in the UAE’s inflation rate to 2 per cent in 2013, followed by an increase of 2.4 per cent in 2014 and 2.5 per cent in 2015.
Furthermore, it said the UAE’s total exports is set to reach $367 billion in 2013 and increase to $393 billion by 2014 and $420 billion in 2015.
The IMF delegation expected the UAE’s domestic investments to rise to 15.6 per cent of the GDP in 2013, 17 per cent in 2014 and 18.7 per cent in 2015, compared to 14.2 per cent for 2012.
