Dubai performance boosts UAE growth forecasts

23/05/2011 - Dubai Investment News Posted by Bob Brunskill
Dubai performance boosts UAE growth forecasts

Recovery and returning confidence in Dubai is helping to boost the UAE's forecast GDP growth.The emirates' economy is expected to expand by around five per cent in 2011 and this is expected to remain strong into 2012, a key Kuwaiti bank has said.National Bank of Kuwait (NBK) said it had revised its forecast for the UAE's non-oil GDP growth from three to four per cent, emirates24-7 reported.It projected overall GDP growth at five per cent this year and slightly lower at around 4.7 per cent in 2012. In addition, NBK predicted that growth in the non-oil sector would stand at around four per cent in 2011 and five per cent in 2012."The improvement comes from a combination of higher than expected oil prices, a strong performance from the trade sector and expectations that faster regional growth will benefit Dubai," the bank said in a study.Lower than expected inflation is also expected to boost the country's international competitiveness.