Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
The UAE economy is set to maintain strong medium-term momentum, with real GDP projected to grow by 5.3% in 2027, following a robust 5.8% expansion in 2025, according to the latest World Economic Outlook released by the International Monetary Fund (IMF).
Globally, the IMF expects economic growth to slow, with world output projected at 3.1% in 2026 and 3.2% in 2027. The latest 2026 forecast is 0.2 percentage points lower than the January 2026 projection.
IMF Chief Economist Pierre-Olivier Gourinchas told AFP that growth could have been stronger. “We were planning to upgrade growth for 2026 to 3.4% if not for the war,” he told AFP.
Among advanced economies, growth remains subdued. The United States is projected to expand by 2.3% in 2026, 0.2 percentage points higher than the January forecast, before easing to 2.1% in 2027. In contrast, the Euro area is expected to grow by 1.1% in 2026, down by 0.1 percentage point from January, and 1.2% in 2027, reflecting continued weakness across the bloc.
In Asia, China’s growth is forecast at 4.4% in 2026, 0.2 percentage points lower than the January projection, and 4.0% in 2027. India, meanwhile, is expected to remain the fastest-growing major economy, with growth projected at 6.5% in 2026, down by 0.2 percentage point from January, and unchanged at 6.5% in 2027.
In the Gulf region, Saudi Arabia is projected to grow by 3.1% in 2026, before accelerating to 4.5% in 2027.
The IMF also flagged rising price pressures, with global inflation projected at 4.4% in 2026, 0.6 percentage points higher than its January estimate, before easing to 3.7% in 2027 as the disinflation trend resumes.
