55 of UAE businesses worried about inflation
The IMF pegs inflation for the UAE at about 10 per cent - a number it says could be much higher in Dubai, according to the op-ed pages of the Gulf News.
"Despite everyone from the Central Bank to Standard Chartered saying that inflation would drop this year due to the rent cap and new living units coming online, consumers continue to feel increasingly pinched", it said.
"55 per cent of UAE businesses are worried about inflation, especially steadily increasing rental costs, according to a poll by HSBC and YouGov Siraj, reported today the Dubai-based English language daily "Now the International Monetary Fund (IMF) is warning that the steadily increasing costs of pretty much everything may limit growth potential, said the paper.
"That, in turn, make it more difficult for the country to reach growth goals set out earlier this year by the governments of both the UAE and Dubai." "The dollar's steady fall, which has pulled the pegged dirham down with it, has only made tighter finances squeeze further for anyone who has debt in other currencies", it noted.
"So it is no surprise that the IMF expects growth to stall, which could lead to dreaded stagflation - decreasing purchasing power and slow to no economic growth", concluded the Gulf News. Source
"Despite everyone from the Central Bank to Standard Chartered saying that inflation would drop this year due to the rent cap and new living units coming online, consumers continue to feel increasingly pinched", it said.
"55 per cent of UAE businesses are worried about inflation, especially steadily increasing rental costs, according to a poll by HSBC and YouGov Siraj, reported today the Dubai-based English language daily "Now the International Monetary Fund (IMF) is warning that the steadily increasing costs of pretty much everything may limit growth potential, said the paper.
"That, in turn, make it more difficult for the country to reach growth goals set out earlier this year by the governments of both the UAE and Dubai." "The dollar's steady fall, which has pulled the pegged dirham down with it, has only made tighter finances squeeze further for anyone who has debt in other currencies", it noted.
"So it is no surprise that the IMF expects growth to stall, which could lead to dreaded stagflation - decreasing purchasing power and slow to no economic growth", concluded the Gulf News. Source
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