The collapse in oil prices will ally with lower crude output to depress the UAE economy and revenues but its strong financial position will prevent the country from sliding into a recession, a key Saudi bank said yesterday.
After making big leaps in the past few years, the UAE's gross domestic product is expected to contract in nominal terms and grow by less than one per cent in real terms, the Saudi American Bank (Samba) Group said in a 22-page research.
Its fiscal situation will also be a victim of lower crude prices and production but the balance is expected to remain in surplus and could only revert to a deficit if oil prices dip below $40 through the year, Samba said.
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