UAE real GDP will rise to 3.4% in 2018 — IMF

Economic activity to strengthen gradually in the coming years

The economic growth in the Middle East and the UAE in particular is expected to grow substantially next year, according to the World Economic Outlook (WEO) update of the International Monetary Fund (IMF).

The IMF has projected the UAE’s real GDP will surge to 3.4 per cent in 2018.

“Economic activity is expected to strengthen gradually in the coming years with firming oil prices and other global indicators, and an easing pace of fiscal consolidation,” the IMF Executive Board said in a statement. The IMF has projected that the UAE’s non-oil growth will rise to 3.3 per cent in 2017, reflecting increased domestic public investment and a pickup in global trade. Over the medium term, non-oil growth is expected to remain above 3 per cent, supported by accelerating investment in the run up to the Expo 2020. The planned VAT introduction in 2018 is not expected to have a significant adverse impact on growth.

The IMF forecast for 2018 showed the regional GDP growth rebounding to 3.3 per cent, largely driven by a turnaround in key regional economies such as the UAE, Saudi Arabia and Kuwait.