UAE economy projected to grow by 5.1% in 2025: IMF

WASHINGTON (WAM)

The UAE's real GDP is projected to remain at 4 percent in 2024, rising to 5.1 percent in 2025, according to the IMF World Economic Outlook (WEO).

Released today on the sidelines of the 2024 IMF/World Bank Group Annual Meetings, the WEO projected the Middle East and Central Asia economies to grow by 2.4 percent and 3.9 percent in 2024 and 2025 respectively.

Global growth is expected to remain stable yet underwhelming, according to the outlook. At 3.2 percent in 2024 and 2025, the growth projection is virtually unchanged from those in both the July and April 2024 WEO.

The report estimated the growth of advanced economies at 1.8 percent in both 2024 and 2025, from 1.7 percent in 2023, while emerging market and developing economies are expected to grow by 4.2 percent in both 2024 and 2025, from 4.4 percent in 2023.

Global headline inflation is expected to fall from an annual average of 6.7 percent in 2023 to 5.8 percent in 2024 and 4.3 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging markets and developing economies.

The WEO said that the US economy is expected to grow by 2.8 percent in 2024, down to 2.2 percent in 2025, while the Eurozone economy is expected to grow by about 0.8 percent during the current year and 1.2 percent next year.