The UAE economy could grow by as much as 3.2 per cent this year if the price of oil rises, the Minister of Economy said today. If the price of oil averaged US$85 over the year, GDP could reach 3.2 per cent, said Sultan al Mansouri. GDP growth "depends what happens with the price of oil but it should settle between $80 and $85." Growth in the UAE could be between 2 and 3.2 per cent this year, he said. The Emirates posted growth of 1.3 per cent last year, he said.
On Friday in London, Brent crude traded at $74.30 a barrel. Mr al Mansouri was speaking in Dubai at the launch of the UAE's economic report for last year, which is produced by the National Bureau of Statistics. The non-oil sector's share of the economy rose to 71 per cent last year from 66.5 per cent in 2008, the report said. It expected inflation to reach 1.1 per cent by the end of the year before rising to between 2 per cent and 2.5 per cent by the end of next year, as the global economic recovery took hold. Inflation slowed to 1.56 per cent last year after reaching double-digit highs prior to the global financial crisis.
tarnold@thenational.ae
