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 about 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 about 7.1% of GDP in 2020. 2023, and by about 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 about 0.1% from its previous expectations, bringing the expected growth this year to 2.8%, and about 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 about 3.1% and about 3.2% in 2024, with an inflation rate of 12.6% this year and about 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 about 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 about 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 about 1.4% in 2024, with the growth of the US economy declining to 1.6% this year and about 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 about 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 about 5.3% this year, compared to 4.4% in 2022. And to record about 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.