The inflation rate in the UAE may turn negative in the second half of the year, pulled down by housing and food prices, Bloomberg reported citing a Deutsche Bank note to clients.
“Headline inflation has declined sharply year-to-date and looks set to slip into negative territory,” Caroline Grady, a London-based economist for the bank, wrote in the note. “Our expectation of further declines in real estate prices would drag the housing component lower and a widening output gap will keep price pressures subdued more generally.”
“A rebound in global trade should help Dubai but the pullback in construction and infrastructure spending suggests a return to previous high growth rates is unlikely,” the report said. “Abu Dhabi should fare better.”
No comments:
Post a Comment