UAE economy to grow more than 6% in 2022, IMF says

UAE economy to grow more than 6% in 2022, IMF says

The UAE economy is set to grow by more than 6 per cent this year, after expanding by 3.8 per cent in 2021, buttressed by a rebound in tourism, construction and activity related to the Expo 2020 Dubai, the International Monetary Fund has said.

An expansion of 6 per cent would be the highest since 2011, when the economy grew by 6.9 per cent. The UAE economy expanded by 8.4 per cent in the first quarter of this year, exceeding initial estimates, as a result of higher oil prices and successful Covid-19 mitigation measures.

“Economic growth has been robust this year,” said Ali Al-Eyd, who led the IMF team that met UAE authorities from November 2 to November 17.

“Fiscal and external surpluses have increased further, benefitting from the higher oil prices, as well as the removal of the temporary Covid crisis-related fiscal support to businesses and households as the pandemic has gradually waned.

“Increased global uncertainty led to larger financial inflows, contributing to rapid real estate price growth in some segments.”

While oil prices have declined from well above $100 a barrel and were at a near two-month low on Monday, due to a slowing global economy and a potential drop in demand from