Dubai World agreement lifts sentiment in UAE
The GDP forecast for the UAE for 2010 has been raised by the International Monetary Fund (IMF) as the economy benefits from a strong rebound in Asia and agreement over Dubai World’s $24.9bn debt restructuring plans. Economic expansion will reach 2.4 per cent, faster than the 1.3 per cent it previously forecast. Inflationary pressures in the UAE are expected to remain muted, averaging 2 per cent this year and 2.5 per cent next year. The UAE’s current account balance would climb from 4 per cent of GDP last year to 5.4 per cent and 5.6 per cent this year and next, respectively, the IMF said in its revised world economic outlook report.