The International Monetary Fund has lowered its forecast for growth in the United Arab Emirates. The latest estimate for economic growth in the UAE is 2.1 percent, down on expectations of lower oil prices and the slowing global economy. That is down from estimates that were, in some cases, over 10 percent at times throughout last year.
“The outlook for 2009 and beyond has become more clouded, as the UAE has been adversely affected by the turmoil in global financial markets,” the IMF said. “The global weakening will reduce demand for tourism, trade and financial services, while lower oil prices may affect public spending.”
In addition to the revised IMF estimates, government and private sector analysts have also lowered their forecasts as a result of the global economic crisis. Some are predicting even lower growth rates than the IMF, with one analyst, EFG Hermes, projecting a 1.7 percent shrinkage in the economy.
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