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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    The IMF raises its expectations for growth in the UAE

    Rocky
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    The IMF raises its expectations for growth in the UAE Empty The IMF raises its expectations for growth in the UAE

    Post by Rocky Mon 01 Oct 2018, 3:33 am

    The IMF raises its expectations for growth in the UAE

    The IMF raises its expectations for growth in the UAE 10368

    The International Monetary Fund raised its forecast for economic growth in the UAE as a result of expectations of oil production growth and state spending.
    The economy is likely to grow by 2.9 percent this year and 3.7 percent next year, said Natalia Tamirisa, head of the fund's mission in the UAE late on Sunday. Preliminary data in the UAE showed GDP grew 0.8 percent in 2017.
    In April, the fund predicted a 2 percent growth in the UAE and three percent next year.
    An agreement to ease oil production restrictions between global producers of crude in mid-2018 allowed the UAE to increase production while oil prices recovered to allow more money for government spending. On Sunday, the UAE government approved a 17.3 percent increase in the federal budget for 2019 compared to the current year.
    That slow growth in the private sector, which faces rising interest rates, could offset the tightening of monetary policy in the United States and was also affected by falling real estate prices.
    "Non-oil activities remain weak as companies continue to be restructured and supply oversupply demand in the real estate market and financial conditions are more difficult," Tamirisa said in a statement following consultations between the IMF and the UAE.
    Last month, Standard & Poor's downgraded the credit ratings of two Dubai-owned companies, saying Dubai's weak economy limited the government's ability to provide financial support to both companies when needed.
    The UAE's Tamaresa statement urged greater monitoring of government debt. The debt problems of government companies in Dubai in 2009 caused a financial crisis that almost caused Dubai to default on its debts.
    However, Tamirissa told Reuters that the financial situation of the Dubai government was not a concern at the moment.
    Dubai's public debt to GDP ratio at 30 per cent was not high by international standards and could be dealt with and expected to rise slightly over the next two years as Dubai prepared to host the Expo 2020.
    State companies in Dubai are undergoing restructuring and, in some cases, reducing debt levels, giving them greater room for risk management. "We do not expect financial pressure on Dubai," she said.
    Property prices contributed to the Dubai crisis in 2009, but Tamirisa said that the current decline in real estate prices in the UAE still seems moderate from a long-term perspective.
    Since the crisis, authorities have taken steps to reduce the risk to the banking sector because of mortgages and many have been successful, saying "risk management is generally manageable," she said.
    The IMF said it expected the UAE's total fiscal deficit, including each emirate and the federal government, to remain stable at 1.6 percent of GDP this year and then return to record surplus next year.

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