The UAE has successfully weathered recent external shocks, thanks to its large financial buffers, diversified economy, and strong policy response. Continued fiscal and structural reforms to raise productivity while adequately saving oil revenues for future generations over the longer term will help ensure economic resilience and prosperity in the years to come. The economy is starting to recover from the 2015–16 slowdown caused by a decline in oil prices. Growth momentum is expected to strengthen in the next few years, helped by higher oil output, increased public investment, and stepped-up structural reforms. Downside risks have risen, driven by global and regional factors.
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