DUBAI: The UAE is set to post its first fiscal deficit since 2009 because of lower oil revenues, but it can avoid any serious economic slowdown, the International Monetary Fund said.
The UAE’s consolidated fiscal balance is expected to swing to a deficit of 2.3 percent of gross domestic product in 2015 from a 5.0 percent surplus last year, the IMF said on Thursday.
Zeine Zeidane, who led the IMF mission, said the the deficit posed no threat to the economy.
He estimated that at today’s oil prices, the UAE could keep spending at current levels for at least 30-40 years, drawing on its ample financial reserves.
Deficit poses no threat to UAE economy: IMF
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