The UAE’s real gross domestic product (GDP) is predicted by the International Monetary Fund (IMF) to increase by 4% in 2024. The IMF said in a statement today that the UAE’s economic growth is broad-based and is being driven by robust activity in the tourism, construction, manufacturing, and financial services sectors. The statement came after a team of its experts concluded their visit to the UAE regarding the 2024 Article IV consultations.
Additionally, the IMF projected that the UAE’s relatively high oil prices would sustain the country’s large fiscal and external surpluses.
Large budget deficits could further undermine investor confidence and depress public finances, according to the IMF. Domestic factors could also hinder growth, such as the inability to finish post-pandemic spending and successfully implement reforms.
Additionally, Rome should raise the retirement age to reduce its high pension costs.
The IMF projects the Italian GDP to rise by 0.7% in 2024 and 2025 as the expansionary effect from the EU funds is anticipated to largely offset the phase-out of expensive incentives for home renovations, the so-called Superbonus. The IMF projects that in 2024, the UAE’s overall government surplus will be approximately 5% of GDP, while the current account surplus will likely be roughly 10% of GDP.
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