Dubai's GDP forecast to grow 4.1% in first quarter

posted on 24/01/2012: 232 views

Dubai's GDP is expected to grow 4.1 per cent in the first quarter of this year, according to the Dubai Economic Outlook 2011 report released by the Dubai Economic Council yesterday.

However, the report also suggested that GDP growth might decline as the year wears on. Abdul Razak Al Faris, chief economist and CEO of research at the Dubai Economic Council, said any such decline would be brought on by an economic slowdown in Dubai's trade partners such as the EU members, China, India and other GCC states.

In anticipation of continued expansion in the global economy, real GDP is expected to grow through the first quarter of 2012.

The lowest estimated growth rate — about 3.5 per cent — was attributed to the third quarter of 2011 followed by an increase of 5 per cent in the fourth quarter, he said.

While Dubai recorded an inflation rate of zero in the fourth quarter of 2011, inflation is expected to rise to 1.5 per cent in the first quarter of 2012, according to the report.

Al Faris observed that European sovereign funds and the consequences of the euro's decline and the dollar's gains as well as the stable cash flow in the local market were the main factors that would keep inflation at 1.5 per cent. – Gulf News

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