IMF Projects UAE GDP Growth at 4% in 2024, Rising to 5.1% by 2025

Abu Dhabi, The Gulf Observer: The UAE’s real GDP is projected to hold steady at 4 percent in 2024 and rise to 5.1 percent in 2025, according to the latest World Economic Outlook (WEO) released by the International Monetary Fund (IMF) Tuesday. The report, unveiled during the 2024 IMF/World Bank Group Annual Meetings, also forecasted regional growth rates for the Middle East and Central Asia at 2.4 percent in 2024 and 3.9 percent in 2025.

Global economic growth is expected to remain subdued, with the WEO predicting a stable yet modest growth rate of 3.2 percent for both 2024 and 2025, in line with projections from the IMF’s July and April 2024 reports.

Advanced economies are estimated to grow by 1.8 percent in 2024 and 2025, a slight increase from 1.7 percent in 2023. Meanwhile, emerging markets and developing economies are projected to expand by 4.2 percent in 2024 and 2025, down from 4.4 percent in 2023.

Global inflation is expected to decrease, falling from an annual average of 6.7 percent in 2023 to 5.8 percent in 2024 and further down to 4.3 percent in 2025. Advanced economies are expected to meet their inflation targets more quickly than emerging markets and developing economies.

In specific regions, the WEO predicts that the U.S. economy will grow by 2.8 percent in 2024, slowing to 2.2 percent in 2025, while the Eurozone is expected to see modest growth of 0.8 percent in 2024, improving slightly to 1.2 percent in 2025.