The United Arab Emirates economy is projected to expand by 3.1 per cent in 2015 driven by a robust non-oil sector, the country’s central bank projects.
The country’s sustained policy to diversify its economic base has started to bear fruit as the non-oil economy is expected to grow by 3.5 per cent this year, the bank says.
In a quarterly report issued yesterday, the bank indicates that inflation remained in the vicinity of 4.6 per cent despite a slower pace of growth as a result of higher costs of housing and lifting of fuel subsidies.
Furthermore, the report reveals that deposits with local banks slowed down as a result of the plunge in oil prices, which led to lower value of money supply.
However, the country’s banks continued to lend to non-oil sectors at a moderate growth pace, says the report published by Al Ittihad.
In the report, the central bank reveals that it has started to issue a composite economic index to gauge economic performance on a quarterly basis, taking into consideration local and international economic developments and their impact on the national economy.