Mustafa Abdul Azim (Dubai)
The International Monetary Fund has drawn positive prospects for the growth of the UAE economy during the current and next years, expecting GDP growth this year by regarding 3.5%, rising to 3.9% in 2024, despite its reduction in global economic growth expectations this year to 2.8%.
According to the Fund’s expectations, contained in the April edition of the “Global Economic Outlook” report, which is issued twice annually, that the UAE economy is the fastest growing among the economies of the Gulf Cooperation Council countries during the current year, benefiting from the momentum of recovery in the non-oil sectors.
Inflation in the UAE
The fund expected that the inflation rate in the UAE would decline from 4.8% in 2022 to 3.4% and 2.3% during the current and next years, to be among the lowest rates in the world, estimating the balance of the current account account in the UAE at regarding 7.1% of GDP in 2020. 2023, and by regarding 7% next year.
global growth
The International Monetary Fund lowered its forecast for the growth of the global economy during the current and next years by regarding 0.1% from its previous expectations, bringing the expected growth this year to 2.8%, and regarding 3.0% in the year 2024.
The Fund expected the economies of the Middle East and Central Asia to grow this year at a rate of 2.9%, and that growth would rise next year to 3.5%, with the inflation rate in the region rising to 15.9%, before declining in 2024 to 12%.
oil exporting countries
The Fund expected that the oil-exporting countries in the Middle East and Central Asia would record growth this year by regarding 3.1% and regarding 3.2% in 2024, with an inflation rate of 12.6% this year and regarding 9.3% next year.
Gulf economy
In terms of the economies of the Gulf Cooperation Council countries, the report expected the UAE economy to record the fastest growth rate in the region this year by regarding 3.5%, followed by the economy of the Kingdom of Saudi Arabia with an expected growth of 3.1%, then the Qatari economy with an expected growth of 2.4% and the economy of the Sultanate of Oman with a growth of 1.7%. And the economy of the State of Kuwait by regarding 0.9%.
The Fund’s expectations indicate a slowdown in the growth of advanced economies from 2.7% in 2022 to 1.3% this year and regarding 1.4% in 2024, with the growth of the US economy declining to 1.6% this year and regarding 1.1% in 2024, as well as the economies of the euro area expected to decline to 0.8%. % this year.
In terms of inflation, the Fund expected the global inflation rate to decline from 8.7% in 2022 to 7% this year and to 4.9% in 2024, and to decline in advanced economies to 4.7% this year and to 2.6% next year.
emerging markets
The International Monetary Fund report expected the economies of emerging and developing markets to grow by regarding 3.9% during the current year, before the growth rate increased to 4.2% in 2024, in conjunction with the improvement in the growth of the Chinese economy, which is expected to reach a rate of regarding 5.3% this year, compared to 4.4% in 2022. And to record regarding 4.5% in the year 2024, as well as the growth of the Indian economy at a rate of 5.9% this year, before rising to 6.3% next year.
