The International Monetary Fund said that growth of the UAE economy would rebound in its May 2017
annual Article IV assessment but cut its outlook for 2017. The forecast of just 1.3% in 2017 came just
a month after the Fund has pencilled in growth of 1.5% in its world economic outlook. The Fund now
expects growth of 4.4% and 3.3% in 2018 and 2019 rather than 3.1% and 3.4%. It has forecast 3.5% for
2020. The non-oil private sector in the UAE enjoyed another month of improvement in business conditions
in May 2017 albeit at a slower pace. The snapshot survey of purchasing managers by Emirates
NDB showed the headline index was 54.3, down from 56.1 in April. It was still well above the 50.0 point
that marks the line between expansion and contraction. The growth was driven by output, new orders.
After a seven-month sequence of inflation, the non-oil private sector faced lower input costs. New
business inflows rose sharply in May, despite the rate of growth easing to a five-month low.