The UAE’s GDP growth rate is due to contract by 0.2 percent by the end of this year, despite government efforts to minimise the effects of the global economic slowdown.
This prediction by the IMF was released on Monday as part of a report by the Dubai Chamber of Commerce and Industry.
The analysis says, however, that improving global economic conditions and a surge in oil production and prices are expected to help the economic growth rate improve to 2.4 percent in 2010.
Hamad Buamim, director general of the Dubai Chamber of Commerce and Industry, said the UAE has been one of the first countries to recover from the global economic crisis.
“The government has played a crucial role in getting the country’s economy back on track by offering timely sops and liquidity to the affected economic sectors,” he said.
He pointed out that consumer confidence was now at an all-time high as the UAE’s banking sector was showing signs of recovery.
Further, that falling realty prices and rental costs had come to the relief of both Dubai residents and businesses.
He also indicated that Dubai’s exports would continue to register growth in 2010.
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