The global credit rating agency (Moody's) expected the UAE's economic growth to be stable this year. The oil economy is likely to slow down as a result of lower oil prices this year than previously expected, and the average price of a barrel this year is expected to reach $62, compared to the previous expectation of $71.
According to the agency, the UAE is expected to register a positive surplus in the current accounts this year, excluding a surplus in the budget. It also expected that Abu Dhabi's spending rise and its motivation package, announced by the emirate in June last year, are expected to spur the growth in the non-oil economy this year.
As per Moody’s, the GCC GDP growth is expected to reach 2.1% this year, up from 2% last year and a 0.2% contraction in 2017. Revealing that the OPEC agreement to cut the production in 2019 is actually an increase of 3% in production for the UAE, compared to the average production last year. According to the agency, Gulf oil prices fell last year, compared to 2014 levels, reflecting the gradual improvement in the level of financial reforms, including the introduction of value added tax in the UAE and Saudi Arabia last year, and in Bahrain at the beginning of this year, and the enforcement of the Selective Tax in the UAE and other GCC countries.
Source: (Al Khaleej newspaper, Edited)
