GDP, Oil Price, Inflation and Debt Restructuring

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CORONAVIRUS IMPACT

The Minister of Economy, Mr Sultan Al Mansouri, today made remarkable comments about the local economy during the launch of the UAE’s economic report for last year, which is produced by the National Bureau of Statistics.

In his opinion, GDP growth “depends what happens with the price of oil but it should settle between $80 and $85.” If the price of oil averaged US$85 over the year, GDP could reach 3.2 per cent. Growth in the UAE could be between 2 and 3.2 per cent this year, the minister said. Similar figures were predicted by analysts from BofA Meryl Lunch earlier this year.

Inflation is expected to reach 1.1 per cent by the end of the year, before rising to between 2 per cent and 2.5 per cent by the end of next year, as the global economic recovery progresses. Inflation slowed to 1.56 per cent last year after reaching double-digit highs prior to the global financial crisis.

Mr. Al Mansouri also added that he believes Dubai International Capital, or DIC, will not need federal aid Dubai World.

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