International Monetary Fund (IMF), the global body that assists the reconstruction of the world’s international payment system, has said that UAE's real gross domestic product (GDP) will drop this year. In 2012, the country's GDP is expected to grow at 2.3 per cent, down from 4.9 per cent growth rate recorded last year. Inflation is expected to remain at 1.5 per cent in 2012.
"With limited potential for further increases in oil production in the near term, overall GDP growth is expected to moderate to 2.3 percent. Inflation is likely to remain subdued at around 1.5 percent this year," Harald Finger, a Top IMF Official said.
An IMF mission visited the UAE recently to meet with Minister of State for Financial Affairs Obaid Humaid Al Tayer, Minister of Economy Sultan Bin Saeed Al Mansoori, Governor of the UAE Central Bank Sultan Bin Nasser Al Suwaidi, and senior representatives from the business and financial community.
"The authorities have made good progress in improving the quality of economic statistics. Nevertheless, more progress is needed to strengthen key statistics, including balance of payments, national accounts, and fiscal accounts,” Finger added.