UAE forecasts economic growth of 4.2%

Haspress-up

Wednesday 07 November

The central bank is forecasting GDP growth of 4.2 percent in 2019, up from 2.8 percent in 2018, a higher than expected level, said the central bank governor.

"The economy is growing and liquidity is available, as well as government initiatives," Governor Mubarak Rashid Al Mansouri said at a conference in Abu Dhabi.

The central bank announced in September that it was forecasting a 2.3 percent GDP growth corrected for inflation, but Mansouri said he hoped to reach 2.8 percent in the first quarter. here the end of the year.

He then told reporters that growth prospects for next year were mainly from oil, but that the non-oil sector had contributed strongly.

The UAE has introduced a 5% VAT this year while diversifying their oil-based economy.

The tax has had an extraordinary impact on inflation, which is expected to reach 3.6%, which is largely in line with the IMF's forecasts, according to which an average of 3.5% this year and an increase over 2 % in 2017, he said.

The non-oil sector is expected to improve next year to 3.7 percent, up from 3.3 percent this year, Mansouri said. He added that the UAE did not expect to have a significant impact on the country's economy because of the sanctions imposed on Iran.