UAE deficit to widen to 7.2% in 2016, IMF says | GulfNews.com

UAE deficit to widen to 7.2% in 2016, IMF says | GulfNews.com:

"The UAE’s 2016 fiscal deficit is seen widening to about 7.2 per cent of gross domestic product (GDP) before improving over the medium term, aided by improving oil prices, World Expo 2020 investments and more favourable external conditions, the International Monetary Fund (IMF) has said.

“The growth outlook is expected to moderate in 2016 amid low oil prices, with non-hydrocarbon growth projected at 2.4 per cent due to sizeable fiscal consolidation, softer economic sentiment and somewhat tighter monetary and financial conditions,” Zeine Zeidane, IMF adviser in the Middle East and Central Asia Department, said in a statement.

While average inflation is seen declining to 3.2 per cent in 2016 from 4.1 per cent in 2015, according to the fund, private sector growth is expected to bear the brunt of a slowing economy and larger fiscal financing needs."



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