Growth in Dubai could reach 5.6% before the year is out, according to one advisory firm, should the global economy continue to perform well.
This prediction comes hot on the heels of other positive economic news which saw a recent report from the International Monetary Fund (IMF) suggesting that Dubai was benefiting from an improved ability to finance debts, based on more conservative spending and stronger growth in the economy.
By drawing on this data, there is a suggestion that, even if the global economy should slow, Dubai could continue with an impressive rate of growth as it has fostered a vibrant and robust economy that could still see an upswing of around 3.5%.
Similar conclusions were drawn by the Institute of International Finance (IIF) with the organisation’s director saying “We see Dubai growing at 5.6 per cent in 2014, driven by tourism, transportation, and trade.”
Local economic initiatives have already pushed Dubai’s economy to grow by 4.2% in the first quarter of the year and the Emirate is expected to maintain this surge throughout the year. The emirate’s real GDP increased to around Dh84.6 billion in the first quarter of 2014 from Dh81.3 billion in the first quarter of 2013.
Figures from the Dubai Statistics Centre showed that light industry was a major factor to this growth with a whopping 6.8% growth contributing to the overall growth of 13.5% of Dubai’s gross domestic product. Other areas saw growth coming in strongly as well with transport, storage and communication posting a 5.2% with real estate and business services being just under that at 5.1% and retail and wholesale growing at 4.1%. The figures showed hotels and restaurants expanded by 3.9% whilst the financial sector grew by nearly 1.2% in the same period.
The executive director of the Dubai Statistics Centre said this of their figures:
“Growth affected all sectors…the continued growth in Dubai is a result of the prudent policies and initiatives adopted by the government to expand the domestic productive base, mainly growth-oriented sectors like trade, tourism, logistics and financial services.”
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