Downside risks from new oil price fall persist, UAE authorities must continue with reforms IMF says
The IMF forecasts that UAE’s GDP growth will accelerate to 3.4% in 2018 from an expected 1.3% this year, Gulf News reported referring to an IMF statement after the completion of Article IV Consultation mission to the country. The IMF underlined economic growth was subdued last year namely because of low oil prices and oil output decline which has also affected the budget and some public infrastructure projects.
As the country opts to diversify from oil and IMF said the growth of non-oil economy will average above 3% a year in the medium term, Gulf News added.
The IMF, however, admits downside risk prevail from a possible new fall in global oil prices. This highlights need for the UAE authorities to continue with structural reforms and fiscal consolidation efforts starting with a timely introduction of the VAT and excise duties, the statement reads.
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