IMF further lowers UAE's economic growth forecast, projects 6.6% contraction
The International Monetary Fund (IMF) on Tuesday further revised down the UAE's economic forecast due to impact of Covid-19 on the country's vital sectors and fall in oil prices, projecting a 6.6 per cent contraction in 2020 and a growth of 1.3 per cent for the next year.
The IMF had projected a 3.5 per cent contraction for 2020 and a 3.3 per cent growth in 2021 for the UAE in its World Economic Outlook report issued in April. The UAE will see negative inflation of 1.5 per cent this year. However, current account balance will stay in the positive territory at 3.6 per cent and 7.5 per cent for 2020 and 2021, respectively, it said in its latest World Economic Outlook released on Tuesday.