A new forecast has pegged UAE’s GDP growth at 3.9 per cent, reinforcing the strong sentiment that the economic recovery in the emirates is well underway.
The forecast is put out in the latest Bloomberg Middle East Economic Survey, which is based on a median estimate of 18 economists.
The new estimate is a revision of a 3.4 per cent forecast in the previous quarter and the biggest revision among Gulf Cooperation Council (GCC) countries in the report.
Sultan Al Mansoori, UAE Minister for Economy, said yesterday he expects gross domestic product to expand as much as 4.5 per cent this year.
The country's non-oil economy is forecast to expand 4.5 per cent this year, the fastest pace since 2008, according to data compiled by Bloomberg and International Monetary Fund estimates.
On Monday, credit insurance giant Euler Hermes said the UAE economy would grow by 3.5 per cent this year backed by infrastructure development and improved business climate. The International Monetary Fund, however, has predicted a 3.1 per cent growth.
According to Euler Hermes, the economic growth across the GCC countries was anticipated to slow during 2013 and 2014 to 4 per cent and 4.3 per cent, respectively. In 2011 and 2012, the GCC nations posted 7.2 per cent and 6 per cent increases, respectively.
The UAE and Saudi Arabia are by far the two largest contributors to the region’s overall GDP.
Though the IMF has warned Dubai that the emirate might have to intervene in its property market to prevent another boom-and-bust cycle, Standard Chartered has asserted that despite prices soaring property market is not heading towards another crash.
As reported today by this website, Dubai continues to hold the top position on Global Property Guide’s list of highest price rises recorded across 42 cities for the second consecutive quarter of 2013. Prices rose by 17.99 per cent during the year to Q2 2013.