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72385
Mon, 07/27/2009 - 16:32
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UAE economy grew 7.4% in 2008
Abu Dhabi, July 27, 2009 (WAM) - The UAE Central Bank said the country's economy grew 7.4 per cent in 2008, due to high oil prices and measures taken by the bank to support liquidity in the banking sector from September last year according to a report by Reuters
Inflation jumped to 12.3 per cent in 2008 from 11.1 per cent in 2007, as a result of property rental prices rising by 13.4 per cent, the central bank said on Saturday in its annual report.
The UAE's money supply growth was up 29.1 per cent in 2008, reaching Dh899.1 billion ($245 billion) by the end of 2008, compared with Dh696.2 billion the UAE Central Bank reported at the end of 2007. M3 is the broadest measure of money circulating in the UAE economy and an indicator of future inflation.
"These developments indicate a contraction in monetary liquidity in the banking sector due to the lack of liquidity in the global markets, after the exit of speculative money that entered the country in the second half of 2007 and the first quarter of 2008," the report said.
This is evident in the investment balance of banks operating in the country - as shown in deposit certificates issued by the central bank - which dropped to Dh47.1 billion at the end of December 2008. The bank did not give a comparative figure for the same period last year.
The trade balance surplus increased by 35.3 per cent to Dh231.09 billion in 2008, from Dh170.85 billion in 2007. The current balance account surplus was also up 13.4 per cent to Dh81.82 billion in 2008 from Dh72.13 billion in 2007. -
Inflation jumped to 12.3 per cent in 2008 from 11.1 per cent in 2007, as a result of property rental prices rising by 13.4 per cent, the central bank said on Saturday in its annual report.
The UAE's money supply growth was up 29.1 per cent in 2008, reaching Dh899.1 billion ($245 billion) by the end of 2008, compared with Dh696.2 billion the UAE Central Bank reported at the end of 2007. M3 is the broadest measure of money circulating in the UAE economy and an indicator of future inflation.
"These developments indicate a contraction in monetary liquidity in the banking sector due to the lack of liquidity in the global markets, after the exit of speculative money that entered the country in the second half of 2007 and the first quarter of 2008," the report said.
This is evident in the investment balance of banks operating in the country - as shown in deposit certificates issued by the central bank - which dropped to Dh47.1 billion at the end of December 2008. The bank did not give a comparative figure for the same period last year.
The trade balance surplus increased by 35.3 per cent to Dh231.09 billion in 2008, from Dh170.85 billion in 2007. The current balance account surplus was also up 13.4 per cent to Dh81.82 billion in 2008 from Dh72.13 billion in 2007. -
