The World Bank expects UAE’s GDP to grow at a positive pace, registering growth of 2 percent this year, 3 percent next year and 3.2 percent by 2020.
According to the same source, the budget deficit is set to fall to 1.4 percent of GDP this year, 0.8 percent next year and no more than 0.5 percent by 2020. However, International Monetary Fund (IMF) expects UAE to achieve a budget surplus by next year.
In addition, World Bank expects current account surplus to rise at 5.3 percent of GDP this year, from 4.6 percent last year and is expecting it to reach 5.1 percent and 4.4 percent of GDP in the next two years, respectively.
According to the report, planned cessation after 2018 of the OPEC Plus, rise in oil prices, improved crude production capacity, recent policies and reforms aimed at stabilization, including the 5% VAT imposition and other tax adjustments, as well as reduced fuel subsidies, will contribute positively to the economic recovery.
Source: (Al-Khaleej Newspaper, Edited)
