UAE’s GDP to grow 2.3% in 2012: IMF
15 Mar 2012
(MENAFN) The International Monetary Fund (IMF) expected UAE’s economic growth to slow to 2.3 percent this year from an estimated 4.9 percent in 2011, as the Gulf country gradually consolidates fiscal policy, Reuters reported.
IMF said that strong oil prices and strong trade with Asia helped UAE economy recover from the 2009/2010 Dubai debt crisis, which led to a USD25 billion debt restructuring at state-owned Dubai World.
UAE authorities’ plan to gradually consolidate fiscal policy, after heavy spending during the debt crisis, are appropriate.
UAE’s economic outlook, however, could be threatened by the uncertain global economic and financial environment, and any renewed worsening of the global situation could make it more difficult for the UAE’s government-owned companies to meet some of their maturing external debt, IMF warned.
IMF also said that state-linked entities made a noticeable progress in debt restructuring, but they still faced high refinancing needs and continued reliance on foreign funding.