Abu Dhabi: The UAE’s total non-oil foreign trade reached Dh1.75 trillion in 2015, marking a 10 per cent increase compared to 2014, according to the latest report issued by the country’s Ministry of Economy. Meanwhile, the inflation rate reached 4.1 per cent in 2015 — up from 2.3 per cent in 2014.
The growth rate in gross domestic product, however, was lower in 2015, reaching 3.1 per cent. The figure is the lowest in the past few years, as the growth rate in 2014 stood at 4.6 per cent, and 4.3 per cent in 2013. The rate was even higher in 2012 and 2011, reaching 6.9 per cent and 5.2 per cent respectively.
In its report on Foreign Trade for the first quarter of 2016, the Ministry also pointed challenges in the global economic environment, highlighting a note by Fitch Ratings that lowered its growth outlook for the year.
“International ratings agency, Fitch, lowered its global growth outlook, pointing to a slowdown in China and the impact that will likely have on countries that depend on basic commodities like Russia and South Africa,” the report said.
It added that Fitch expects a global growth rate of 2.5 per cent in 2016, which is lower than the 2.9 per cent the agency forecasted in December 2015.
In its note after highlighting the challenges in the global macroeconomic environment, the Ministry of Economy said that the UAE’s economy still stands on solid fundamentals, which will help it weather the storm.
“Despite the sharp drop in oil prices, which will have varying effects on the economy, the UAE’s economy is diversified, and the country has strong cash reserves, strong growth rates across various sectors of the economy, growing foreign direct investments, growing confidence from foreign investors, and a 20.6 per cent increase in investments. Additionally, the services sector such as tourism and aviation are still growing,” the Ministry’s note said.
