UAE economic growth forecast to slow down

08 October 2008
Economic growth in the UAE will slow, although the fall will not be directly related to problems in other global markets, according to ratings agency Standard & Poor’s (S&P).

The agency says that the economic fundamentals in the UAE remain sound but that country-specific factors, rather than the global credit crunch, will result in slow growth.

Speculative currency investment and increasing pessimism towards the real estate sector will have an impact, according to S&P. It says these factors are “tangentially related to the global credit crunch”, rather than being directly caused by it.

The agency adds that a slowdown in growth could be beneficial to the UAE, helping to reduce supply bottlenecks that have increased inflation.

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