UAE’s GDP to touch USD417b in 2014

30 Dec 2014

(MENAFN) According to the Institute of International Finance (IIF), the UAE’s gross domestic product (GDP) is expected to touch USD435 billion in 2016, up from USD417 billion in 2014 and USD405 billion in 2015 under a projected base oil price at USD78 and USD85 per barrel respectively in 2015 and 2016, Khaleej Times reported.

The country’s economic growth is set to range between 4.8 per cent and 5.1 per cent in the next two years, resulting in the country posting a current account balance of USD29.9 billion and USD30.2 billion respectively in 2015 and 2016, accounting for 7.4 percent and 6.9 percent of the GDP.

In such a case, the UAE will record a fiscal balance of 1.8 per cent and 2.8 per cent of the GDP respectively in 2015 and 2016, as well as registering an increase in its public foreign assets, which will grow from USD573 billion in 2014 to USD615 billion in 2015 and USD652 billion in 2016, while its government debt will increase to 22.1 per cent and 23.3 per cent of the GDP respectively in 2015 and 2016.

These numbers would also indicate that the UAE would be able to go ahead with its plans to invest USD700 billion on several infrastructure projects within the next 15 years due to the country’s relatively low fiscal and external current accounts and sufficient foreign assets.

“The UAE looks resilient vis-“-vis the drop in oil prices, given a relatively diversified economy, excellent infrastructure, a more transparent and better regulated banking system, political stability, and ample foreign assets. Monetary and fiscal policies are expected to remain broadly accommodative,” said the report.