Expo 2020 ‘will raise Dubai’s GDP growth, spending and debt’ | GulfNews.com

Expo 2020 ‘will raise Dubai’s GDP growth, spending and debt’ | GulfNews.com:

"Hosting the World Expo 2020 will add at least 1.5 percentage points per year to Dubai’s real gross domestic product (GDP) growth over 2014-2020, leading to annual growth of 5.5 per cent, according to Institute of International Finance (IIF) a Washington based association of 450 global banks and financial institutions.
“The official figure shows World Expo 2020-related spending of Dh88 billion ($24 billion) over 2014-2020. However, a significant portion of the spending on infrastructure projects would still have taken place as part of Dubai 2020 vision. Most of the planned spending is expected to be financed by additional borrowing, leading to further increase in the already high debt,” said Garbis Iradian, Deputy Director of Institute of International Finance.
The IIF’s projections show that Dubai’s debt will increase from $142 billion (Dh521 billion) in 2012 to $168.5 billion by 2020. The debt-to-GDP ratio, however, is expected to decline from 106 per cent of GDP in 2012 to 70 per cent by 2020, assuming annual real GDP growth of 5.5 per cent, and GDP deflator (CPI inflation) of 2 per cent."

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