The latest and foremost prediction from the (IMF) International Monetary Fund is that the UAE’s economy will grow profusely in the Arabian Gulf by 2023.
The economy of UAE will expand more by 4.2% in 2023, surpassing the economies of other states, which would be like Saudi Arabia around (3.7%), Bahrain (3%), Oman (4.1%), Kuwait (2.6%), and Qatar (2.4%) and thereby becoming fastest growing economy in the Arabian Gulf.
According to the International Monetary Fund, Kuwait was predicted to be the fastest-growing economy with an annual growth rate of around 8.7%, leaving the economies of Saudi Arabia and UAE behind, which were estimated at around (7.6%) and( 5.1%) respectively.
The predictions of the International Monetary Fund were based on the WEO projections for export revenues and the understanding of the government plans presented in the 2022 budget.
The economy of the world is foreseeing some complex problems. According to the International Monetary Fund’s World Economic Outlook Report, which was out in October 2022, the invasion of Russia worsened the financial conditions in most countries around the world. Also, the spread of Covid -19 also damaged the economy’s outlook.
There is a significant impact on the future of the global economy due to the effectiveness of the monetary policy, the result of the conflict in Ukraine, and the potential for additional pandemic-related supply-side disruptions in China.
According to the International Monetary Fund, the growth of the world economy will slow down, decreasing from 6.2% in 2021 to 3.2%in 2022 and 2.7% in 2023, respectively.
According to the International Monetary Fund, ” this is the poorest growth profile since 2001, which reflected considerable slowdowns in the main economics, excluding the global financial crisis and acute period of the COVID -19 pandemic.
The International Monetary Fund also warned that monetary policy might incorrectly determine the best course of action to lower inflation. At the same time, it states that an additional blow to the price of energy and food could intensify inflation and increase its duration.
According to the International Monetary Fund, preventing inflation from de-anchoring front-loaded and robust monetary tightening is essential as individuals and companies base their wages and price expectations on their recent inflation experience.
The International Monetary Fund also called for multilateral cooperation, stating that failure to do so would put the world economy at risk of falling apart and thereby “erasing 30 years of the progress toward economic prosperity”.
After observing the statistics of the past and considering the other ongoing factors in UAE, we can conclude that, slowly and gradually, the UAE will thrive to become the fastest-growing economy in the Gulf region.