- October 21, 2022
- Posted by: Waqas Siddiqui
- Category: Business & Economy
UAE Economic Growth Forecast Revised To 5.1% By IMG – 2022
Dubai – The International Monetary (IMF) recently published the World Economic Outlook report. The report revised the United Arab Emirates (UAE’s) economic growth to upward growth for 2022 and 2023. The UAE’s gross domestic product (GDP) is projected to grow by 5.1% in 2022 compared to its previous forecast of 4.2%.
Similarly, the IMF has revised the projections for the Middle East and North African (MENA) GDP growth by 5% this year, up from 4.1% in 2021. However, due to a week global economic outlook IMG anticipates the growth to slow down to 3.6% in 2023. Nevertheless, as one of the top 10 market research companies in Dubai, at Research Konnection, we predict that it is the best time to invest in the UAE economy.
Oil & Gas GDP Growth – GCC Region
The countries that focus primarily on exporting oil will outperform other nations in GDP growth. The Gulf region has resisted a significant number of factors that contribute to economic shocks such as volatile commodity markets, a global slowdown and a tightening of global financial conditions. However, the multi-speed recovery of 2022 will slow as the worsening of global conditions will weigh on the outlook for next year.
Global Economic Slowdown – Impact
The world economy has been hit by one shock over the past few years the coronavirus pandemic, Russia’s invasion of Ukraine, and a resurgence of inflation. The IMF wants inflation to be a major threat and suggests that policymakers must keep the rising prices in check despite the impact on the economy. If price stability is not restored, it might undermine prospects for growth. The Federal Reserve and other central banks have been raising interest rates to tame inflation. The US reported that inflations accelerated in September of 2022, with the cost of housing and other necessities intensifying pressure.
Consumer prices rose 8.2% compared with September of last year. The higher borrowing costs would negatively impact economic growth. The spokesperson at IMF mentioned that despite many Governments, being already heavily indebted after battling the pandemic, should focus on helping the most vulnerable at a time of food shortages and punishingly high energy costs, not on broader spending programs.
UAE Government Measures To Battle Inflation
The UAE government has taken several measures to handle inflation. The UAE’s Ministry of Economy approved a new policy to keep price hikes of basic food items in check. As per the policy, suppliers will have to submit evidence to justify price increases of some of the most sought-after items such as fresh and dry milk, fresh chicken and eggs, bread, flour, sugar, salt, rice, legumes, cooking oil, mineral water, and others. This group includes more than 11,000 commodities, and suppliers who want to raise their prices due to high import costs must submit all relevant evidence and data. The ministry will then decide on the approval and the rate hike.
Furthermore, His Highness Sheikh Mohamed bin Zayed Al Nahyan directed the restructuring of the Social Welfare Programme for low-income citizens and doubled its budget from AED 14 billion (USD 3.8 billion) to AED 28 billion (USD 7.6 billion) which will have a positive impact on the growth of UAE economy.
As one of the top marketing research companies in Dubai, we can assist in successfully setting up your business in United Arab Emirates. At Research Konnection, we specialize in conducting Market Feasibility Studies, developing Business Plans, and supporting clients with data collection (Surveys & Interviews). Feel free to contact us at firstname.lastname@example.org if you need support in business research in Dubai.