Abu Dhabi to ease budget spending cuts, says ratings agency Moody’s | The National

Abu Dhabi to ease budget spending cuts, says ratings agency Moody’s | The National:

"Abu Dhabi will slow the pace of spending cuts in its 2016 budget, ratings agency Moody’s expects.

“We expect Abu Dhabi government’s fiscal consolidation effort to slow because of the need to balance the two objectives of supporting growth and curbing the budget deficit," said Math­ias Angonin, a Dubai-based sovereign analyst at Moody’s. “We [expect] that in 2016 there will be a lower decrease in spending that the 20 per cent achieved in 2015."

The emirate cut public spending by about 20 per cent in 2015 after the hit to oil prices led Abu Dhabi to run a fiscal deficit of 13.2 per cent of GDP that year, according to estimates from Fitch. Moody’s expects that the deficit will narrow to 9 per cent of GDP this year."



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