IMF applauds UAE’s positive economic outlook

IMF applauds UAE’s positive economic outlook

The UAE’s economic outlook remains positive, supported by strong domestic activity with the overall GDP projected to grow at 3.6 per cent in 2023, the Executive Board of the International Monetary Fund (IMF) said on Monday. Following the the 2022 Article IV consultation with the UAE, the IMF’s directors forecast 3.8 per cent surge in non-hydrocarbon growth driven by continued tourism activity and increased capital expenditure. “Nevertheless, the outlook is subject to significant global uncertainties, including weaker growth, tighter financial conditions, and geopolitical developments.” The IMF’s board estimated the country’s overall growth in 2022 to reach 6.9 per cent, with non-hydrocarbon GDP growth of 5.3 per cent while hydrocarbon GDP is expected to grow by 11.1 per cent. Inflation has risen with global trends but is expected to ease to 3.4 percent in 2023. Fiscal and external surpluses, according to the IMF, are expected to remain high on the back of elevated oil prices. “Banks are adequately capitalised and liquid overall, but non-performing loans remain elevated, albeit down from recent peaks, and real estate prices have risen sharply in some segments,” said the IMF. The IMF board has observed that the UAE has taken major efforts under the National AML/CFT