Moody’s sees Abu Dhabi weathering slowing economy amid weak oil prices | The National

Moody’s sees Abu Dhabi weathering slowing economy amid weak oil prices | The National:



"Abu Dhabi’s economic growth is forecast to slow this year if oil prices remain in their current range, although the credit rating agency Moody’s Investors Service said the government is in a strong position to weather the downturn.



In its latest assessment, Moody’s estimated that the emirate’s economic growth rate would slow this year – to below 3 per cent, from an estimated 4.1 per cent last year – because of a huge drop in oil revenues.



Nominal GDP – economic activity before accounting for inflation – will contract by 18 per cent this year if oil prices average US$55 a barrel, and by 25 per cent if oil prices average $40, Moody’s said. Abu Dhabi will be able to maintain spending by drawing on its vast assets and running a slight deficit (forecast to be 1.1 per cent of GDP this year)."



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