UAE growth to remain strong at over 4%, says IMF
A. SREENIVASA REDDY (ABU DHABI)The UAE's economic growth is expected to remain healthy at over 4% in 2025, despite geopolitical tensions in the region, according to the International Monetary Fund (IMF).
'We're seeing robust growth in non-hydrocarbon activity, driven by tourism, construction, public spending, and financial services,' IMF spokesperson Julie Kozack told Aletihad during an online press briefing. She added that oil production in the UAE is increasing faster than anticipated, following the reversal of earlier output cuts. 'The UAE economy has shown resilience in the face of lower oil prices and increased price volatility this year,' Kozack noted.Turning to the broader region, she said GCC growth is estimated to have rebounded to 1.4% in 2024, despite reduced oil output. 'Our projection in the April World Economic Outlook was that GCC growth would rise further to 3.3% in 2025.'She added that non-hydrocarbon growth across the GCC is also expected to remain strong, supported by rapid investment, construction, and ongoing reforms aimed at diversifying regional economies. She affirmed that inflation in the GCC region remained under control.
Kozack advised the GCC governments to maintain fiscal prudence while continuing with structural reforms to support long-term economic diversification.
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