UAE downgrades growth rate
Dubai , July 10, 2008
The UAE revised down its economic growth rate last year to an estimated 5.2 per cent from an earlier 7.6 per cent, the ministry of economy said.
Real gross domestic product hit Dh498.70 billion ($135.8 billion) last year compared with Dh473.91 billion in 2006, the ministry said.
In March, the ministry said the economy grew 7.6 per cent as construction, industry and trade sectors surged.
The UAE grew 11.6pc in 2006, the revised data showed. GDP growth last year was the slowest since 2002.
The UAE has been trying to diversify its economy from oil. Oil dominates the economy of Abu Dhabi, while Dubai's relies more on trade, real estate and transport.
The value of petroleum sector output fell 1.2pc last year to Dh121.33 billion, the data showed, compared with growth of 1pc in data released in March.
Manufacturing rose 12.4pc last year, down from a previous estimate of 15pc, while construction gained 14.4pc, down from a 17pc March estimate.
GDP at current prices was Dh729.73 billion last year, up 16.8pc from the year earlier, the ministry added.
Earlier estimates showed current price GDP rose 16.5pc last year to Dh698 billion.
Meanwhile, inflation should ease this year from an at least 20-year high of 11.1pc in 2007, economy minister Sultan bin Saeed Al Mansouri said.
He attributed global price rises to 'many factors' including high oil prices, geopolitics and exchange rate issues.