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UAE economy minister cuts 2012 GDP growth outlook

UAE-economy-minister-cuts-2012-GDP-growth-outlook

The United Arab Emirates' economy minister cut his forecast for the country's gross domestic product growth this year, predicting expansion of around 3 percent, after a sharp fall in global oil prices over the last several weeks.

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June 4, 2012 5:36 by



The United Arab Emirates’ economy minister cut his forecast for the country’s gross domestic product growth this year, predicting expansion of around 3 percent, after a sharp fall in global oil prices over the last several weeks.

Sultan bin Saeed al-Mansouri, speaking at a news conference on Monday, said he remained optimistic about growth this year.

But his forecast for 2012 was lower than his last prediction, made in March, of “almost 4 percent” growth. At that time, Brent crude oil was around $125 a barrel; since then, signs of a global economic slowdown have dragged oil as low as $97 this week, the cheapest price since January 2011.

The UAE is one of the world’s top five oil exporters.

Mansouri also told the news conference that he expected inflation in the UAE of between 1 and 1.5 percent this year. A Reuters poll of analysts in March predicted inflation of 2 percent in 2012 after 0.9 percent in both 2011 and 2010.



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