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FINANCIAL NEWS
Dubai’s Q1 real GDP to grow by 4.1%
24 Jan 2012
(MENAFN) The Dubai Economic Council (DEC) said that in 2012’s first three months, the emirate’s real gross domestic product (GDP) would be expected to expand by nearly 4.1 percent, reported Emirates 24/7.
The DEC added that in 2009, Dubai’s GDP contracted by around 2.4 percent before starting to recover in the following years, moreover, all economic sectors recorded recovery, driven by increasing liquidity in the emirate.
On the other hand, it said that inflation in the first quarter would maintain a low level, at 1.5 percent, due to the EU debt crisis which strengthens the US dollar, in addition to Dubai’s conservative policy towards liquidity growth.
It is worth noting that the slump in the real estate sector in the wake of the 2008 global financial crisis was the main reason of lower inflation rates in Dubai, since housing represents around 40 percent of the consumer price index, according to DEC.
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