IMF downgrade of UAE growth forecast unfounded | The National

IMF downgrade of UAE growth forecast unfounded | The National:



"Although the IMF downgraded its growth forecast for the UAE quite sharply two weeks ago, the news so far this year does not justify such a big adjustment, with some recent developments even beginning to suggest that a turning point might be on its way.



Two weeks ago the IMF released its regional economic outlook titled Oil, Conflicts and Transitions, in which it downgraded its outlook for many GCC economies, including the UAE’s, based primarily on the outlook for oil prices over the coming year. In it, the IMF anticipated that overall growth in oil-exporting countries would be steady this year, but it forecast a weaker growth outlook in some of the individual GCC economies, including the UAE.



The IMF downgraded its estimate for the UAE’s growth last year to 3.6 per cent from 4.2 per cent previously, and revised growth forecasts for this year and next year down to 3.2 per cent from 4.5 per cent and 4.4 per cent, respectively, in its October 2014 outlook."



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