oil economy is projected to rebound by nearly 3.3 percent in 2011 because of higher oil prices and expansion in some sectors in Dubai, the International Monetary Fund said. It grew by around 2.1 percent in 2010, it added. In a statement after its fourth consultation with UAE authorities, the IMF said the country's GDP is gaining ground, benefiting from strong crude prices, low interest rates and improved growth prospects in Asia. However, it also noted that the UAE needs to take measures to increase its economic resilience in face of any shocks in the future. IMF data showed UAE's real GDP sharply rebounded by around 3.2 percent in 2010 following a contraction in the previous year as a result of a sharp rise in crude prices. "The momentum is carrying into 2011 with non-oil GDP growth projected to accelerate from 2.1 percent in 2010 to 3.3 percent, reflecting strong tourism, logistics, and trade in Dubai and large public investment spending in Abu Dhabi, including through GREs," the report said. "Higher oil prices are contributing to a marked improvement in the fiscal position and balance of payments. The successful restructuring of DW's debt has improved market confidence, allowing top-grade Dubai issuers to regain market access." The IMF urged the UAE to strengthen the economy's "resilience to shocks in the future." "The recent boom-bust experience. highlights the challenge of macroeconomic management over the cycle.”
