The UAE’s real GDP is forecasted to remain stable at 4% in 2024, with an expected increase to 5.1% in 2025, according to the latest World Economic Outlook (WEO) released by the International Monetary Fund (IMF).
The report, published alongside the 2024 IMF/World Bank Group Annual Meetings, also outlines moderate growth prospects for the broader Middle East and Central Asia region, with economies anticipated to grow by 2.4% in 2024 and 3.9% in 2025.
Globally, economic growth is projected to be steady but subdued, with a forecast of 3.2% for both 2024 and 2025, aligning with previous estimates from July and April 2024.
Advanced economies are expected to see a slight growth increase to 1.8% in 2024 and 2025, up from 1.7% in 2023. Conversely, emerging markets and developing economies are projected to experience growth of 4.2% over the same period, a slight decrease from 4.4% in 2023.
Global headline inflation is expected to ease, decreasing from 6.7% in 2023 to 5.8% in 2024, and further to 4.3% in 2025. Advanced economies are anticipated to reach their inflation targets more quickly than emerging markets and developing economies.
In the United States, the economy is forecasted to grow by 2.8% in 2024, followed by a slowdown to 2.2% in 2025. The Eurozone is expected to see more modest growth, with projections of 0.8% for this year and 1.2% next year.
Despite ongoing global challenges, regions like the UAE and other emerging markets are expected to maintain stronger growth momentum over the next two years.