ID :
55809
Thu, 04/16/2009 - 14:57
Auther :
Shortlink :
https://oananews.org//node/55809
The shortlink copeid
UAE not heading towards deflation: Mansouri
Abu Dhabi, April 16, 2009 (WAM) - The UAE is not heading towards deflation even though prices are falling, Minister of Economy Sultan bin Saeed Al Mansouri said yesterday according to a report in "Emirates Business."
And he predicted that the economy would start to see encouraging growth from the second half of the year.
"The fall in prices does not mean we are heading towards deflation," he said on the sidelines of an international aviation conference in the capital. "The Ministry has taken all effective measures to bring down prices and keep them at a stable level."
He said prices in the country were under control and the market would see a full recovery in 2010.
"What we see right now is not the UAE situation but the world situation. Things have come down a little bit here and there, which was to be expected. Worldwide demand for food, for example, has come down. In terms of real estate, there is supply available here and again this should create some stability in the market."
Al Mansouri had been asked to comment on forecasts by some economists that declining prices would lead to deflation.
He said there were definitely signs of prices coming down in certain sectors and areas but this was happening not only in the UAE but in the world at large.
"There are some positive things in this. If you remember in 2007 and 2008, we had a lot of challenges regarding food supplies. We managed those challenges and we are managing now in 2009. International factors have caused food prices to come down by 30 per cent.
"I don't like the use of expressions such as deflation. It is really too negative for the economy. There are some positive aspects to prices coming down."
Asked about an IMF report that says the UAE will see 3.3 per cent growth this year against its earlier forecast of 6.7 per cent, Al Mansouri said: "Anyone can predict anything – but that does not mean it necessarily has to be true.
"They may predict anything. Somebody says it will be 3.3 per cent today and someone says something else tomorrow. For me, I do not predict anything during these times. Whatever you predict may not be right. I have said many times that no one in the world in this kind of economy can predict the right figures."
He said there were positive signs of stability both globally and in the UAE and the region. "What I can say is that we are seeing initial signs of the world economy stablilising. We also see potential for some kind of growth in the second half of this year [in the UAE]. And definitely 2010 will be much better than this year."
Al Mansouri was speaking at the International Air Transport, Air Space Law and Regulation Conference, which he opened.
And he predicted that the economy would start to see encouraging growth from the second half of the year.
"The fall in prices does not mean we are heading towards deflation," he said on the sidelines of an international aviation conference in the capital. "The Ministry has taken all effective measures to bring down prices and keep them at a stable level."
He said prices in the country were under control and the market would see a full recovery in 2010.
"What we see right now is not the UAE situation but the world situation. Things have come down a little bit here and there, which was to be expected. Worldwide demand for food, for example, has come down. In terms of real estate, there is supply available here and again this should create some stability in the market."
Al Mansouri had been asked to comment on forecasts by some economists that declining prices would lead to deflation.
He said there were definitely signs of prices coming down in certain sectors and areas but this was happening not only in the UAE but in the world at large.
"There are some positive things in this. If you remember in 2007 and 2008, we had a lot of challenges regarding food supplies. We managed those challenges and we are managing now in 2009. International factors have caused food prices to come down by 30 per cent.
"I don't like the use of expressions such as deflation. It is really too negative for the economy. There are some positive aspects to prices coming down."
Asked about an IMF report that says the UAE will see 3.3 per cent growth this year against its earlier forecast of 6.7 per cent, Al Mansouri said: "Anyone can predict anything – but that does not mean it necessarily has to be true.
"They may predict anything. Somebody says it will be 3.3 per cent today and someone says something else tomorrow. For me, I do not predict anything during these times. Whatever you predict may not be right. I have said many times that no one in the world in this kind of economy can predict the right figures."
He said there were positive signs of stability both globally and in the UAE and the region. "What I can say is that we are seeing initial signs of the world economy stablilising. We also see potential for some kind of growth in the second half of this year [in the UAE]. And definitely 2010 will be much better than this year."
Al Mansouri was speaking at the International Air Transport, Air Space Law and Regulation Conference, which he opened.
