IMF Upgrades UAE Growth Forecast to 7.7%

The International Monetary Fund has raised its forecast for the UAE's economic growth to 7.7% in 2027, an increase of 2.4 percentage points from its previous April forecast. The report reflects the UAE’s ability to benefit from its advanced infrastructure, substantial financial reserves, and investments in modern technologies, especially artificial intelligence, which is expected to contribute about half a percentage point to annual growth. It is also anticipated that the adoption of new technologies will help boost regional growth by between 0.1 and 0.6 percentage points annually, while inflation is projected to decline to around 2.4% by 2027. The report calls for diversifying exports, strengthening structural reforms, and developing the investment environment to better withstand external shocks and support economic stability in the region.

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