The UAE’s real GDP is forecasted to hold steady at 4% in 2024, with an increase to 5.1% in 2025, according to the latest World Economic Outlook (WEO) released by the International Monetary Fund (IMF).
The report, released alongside the 2024 IMF/World Bank Group Annual Meetings, also highlights moderate growth expectations for the broader Middle East and Central Asia region, with economies projected to expand by 2.4% in 2024 and 3.9% in 2025.
Global economic outlook
On a global scale, growth is forecast to remain steady but lackluster, with projections of 3.2% for both 2024 and 2025, consistent with earlier forecasts from July and April 2024.
For advanced economies, growth is expected to rise slightly to 1.8% in 2024 and 2025, up from 1.7% in 2023. Meanwhile, emerging markets and developing economies are expected to see growth of 4.2% over the same period, down from 4.4% in 2023.
Global headline inflation is expected to ease, dropping from 6.7% in 2023 to 5.8% in 2024 and further to 4.3% in 2025. Advanced economies are anticipated to return to their inflation targets faster than emerging markets and developing economies.
Regional and global projections
In the U.S., the economy is set 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 such as the UAE and other emerging markets are expected to experience stronger growth momentum over the next two years.
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