DUBAI – The United Arab Emirates will see higher-than-expected 4 percent growth in 2012, its Central Bank said, spurred by strong growth in both Dubai and Abu Dhabi, and an increase in public spending and oil prices. The bank's Financial Stability Review predicts 4 percent growth for the UAE's two major emirates this year, contributing to overall growth expectations significantly higher than those made by the International Monetary Fund (IMF). Both the Central Bank and the IMF predict inflation to remain an annual 1.5 percent. The UAE's economy picked up in 2010, climbing 1.3 per cent. It performed even better last year, expanding 4.2 per cent after a 6.7 percent boost in oil and gas revenues. Inflation in the UAE also dipped into negative figures in 2009. It has climbed in the two years since, registering 0.2 percent in 2011, as a 4.9 percent fall in house prices was offset by a 7.8 percent rise in food. In 2009, the economy contracted 4.8 percent, after a crisis in the real estate and manufacturing sectors was followed by declines in oil and gas production and global trade. – Agencies
