The gross domestic product for the UAE is expected to exceed $ 5% in year 2025 as stated by Michael Bolliger the Chief Investment Officer of the Emerging Market at UBS Global wealth management. In an online press briefing with WAM, Bolliger envisions it at 4 per cent in 2024 in line with the latest assessment of the International Monetary Fund (IMF) with projection on UAE’s GDP growth rate to hit 5.1 percent in 2025.
According to Bolliger, there are several trends on the international level influencing the economic expectations for the GCC countries, at least in concerns to oil production and OPEC policies. Also, the economic stimuli in China, changes in the international parity, and reductions in reserve requirements are expected to assist the global networks to uplift the situation of global markets, in general, and for the UAE, in particular.
The UBS executive was pointing towards these global factors that would result in the UAE’s economic performance, both, directly and indirectly, sustaining the nation’s growth trajectory and painting a picture of a constant increase in GDP. This forecast shows that the UAE is indeed flexible enough to adjust economic dexterity in the light of such shifts on the global economic map at this globalised epoch of oil and non-oil industries alike.
Also, Bolliger noted that the economic climate will mainly depend on policy decisions of the U.S Federal reserve and that the interest rate was envisaged to reduce by approximately 150 basis points by the year 2025. Similar adjustments are expected to help generate a conducive environment for economic development, which shall in turn enhance the UAE’s fiscal and economic policies in the future year’s plan.
The projected economic growth rate in the UAE is encouraging to its economic stability that secures its place amongst the GCC countries and its expanding authority in the global economy. These forecasts demonstrate continuing growth and reveal that the UAE intends to pursue the use of foreign economic trends for the nation’s development.
