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IMF says stronger growth, conservative spending boosted Dubai finances

The International Monetary Fund (IMF) has said Dubai’s ability to finance its debts has improved thanks to stronger economic growth and more conservative spending, but the emirate would still be vulnerable in a major downturn of the global economy, Reuters has reported. Dubai’s government debt is expected under a baseline scenario to fall gradually to 41.6% of gross domestic product in 2019 from 60.2% in 2013, the IMF said after annual consultations with the UAE. “Although Dubai’s debt could still become unsustainable under severe shocks, the outlook has improved,” the IMF said in a report. “Continued fiscal consolidation and improving growth prospects have been strengthening Dubai’s resilience to external shocks.”