(MENAFN) The UAE along all other gulf nations will probably suffer a fiscal deficit this year but is projected to return to the safe zone in the following two years, based on all the available numbers.
The International Monetary Fund has estimated a balance in the UAE's real Gross domestic product increase from 4.6 percent in 2014 to 3 percent in 2015 and 3.1 percent in the following year.
The presented positive forecast for UAE is driven by the well-diversified economy and recent fiscal consolidation initiatives by the country's government, according to the International Monetary Fund's data.
"The UAE is able to absorb deficits faster than many of its Gulf neighbors, thanks to the well-diversified economy with hydrocarbon exports accounting for only a third of the GDP," said the regional director for the Middle East.
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