Macroeconomic Position

UAE Economy

Introduction

There are many estimates on the growth of the economy the UAE, but all statistics indicate that of the fastest growing economies in the world. According to estimates by the Ministry of Finance and Industry, the GNP grew by 16.5% between 2006 and 2007, rising from 175 billion dollars to 190 billion dollars. This is one of the factors that led to the global interest in investing in the UAE. The economy of the UAE is booming make the state within the ranks first in terms of some economic indicators, average per capita income and per-capita consumption of energy. It has reached the GNP is 190 billion dollars year 2007 and occupies the UAE that ranked second among the countries of the Gulf, after Saudi Arab Saudi Arabia, which occupies the first place. Because of this development in the volume of commodity imports to the many things most important to meet the needs of development and production of various capital goods, productivity, and meet the needs of consumer goods as a result of the development of clear to income levels. As well as, the great development of re-export trade, where the state became an important center for finance applications increased trade of many countries in the region has increase the value of re-export trade from 11.7 billion dirham in 1990 to 13 billion dirham in 1991 (www.indexmundi.com).

Discussion

Economic Indicators

Official currency of the country is the UAE dirham

Imports witnessed significant growth and are especially in manufactured goods and machinery and transport.

Manages the Emirate of Abu Dhabi sovereign fund to invest an estimated size of the portfolio of 650 - 875 billion dollars by the Abu Dhabi Investment Authority (Sullivan, arthur; Steven M. Sheffrin, 2003, pp. 314).

Major macroeconomic Indicators

 

2006

2007

2008

2009

2010

2011

Real GDP growth (% change yoy):

8.8

6.6

5.3

-3.2

3.2

3.3

Current account balance (US$m):

33,875

15,422

23,324

8,228

21,240

36,877

Current account balance (% GDP):

15.3

6

7.4

3

7

10.3

Unemployment Rate

 

 

 

 

 

2.40%

(Data retrieved from: Development Data Group, 2012)

Fiscal Indicators

 

2006

2007

2008

2009

2010

2011

GDP (US$bn) (current prices):

222.1

258.2

314.8

270.3

302

358.1

GDP PPP (US$bn) (c):

205.2

225

242.2

237.1

247.5

261.2

GDP per capita (US$):

52,520

57,520

66,074

53,363

57,884

66,625

GDP per capita PPP (US$) (c):

48,522

50,130

50,832

46,794

47,439

48,598

Goods & services exports (% GDP):

68.6

72.3

79

74.7

75.3

71.3

(Data retrieved from: Development Data Group, 2012)

Monetary Indicator

Inflation

In an increase, in the rate of consumer price inflation by a wide margin by reached the proportion of 11.1% in 2007 and 12.3% in 2008, and attributed this rise to the depreciation of the dollar against leading currencies and increase the prices of goods imported oil, which priced in Euros or Japanese yen and the pound sterling, and increased pressure of domestic demand. Although the rise, in food prices and rents and imported inflation of the factors that contributed to inflation, but high real estate prices and property is one of the main factors of inflation (Mankiw, 2007, 234).

Inflation fell to the consumer price index to 1.6% in 2009, because of the prudent management of fiscal and monetary policies and taken in a timely manner by the government in the global investment crisis and "low" oil prices. The decline in liquidity and the light of the global economy recovers likely it expected to keep inflation in the Atraoj between ...