UAE’s Economic Growth Projected To Stay Strong At 4% In 2025, IMF Reports

by THEFUTURE.TEAM

January 24, 2025

The International Monetary Fund (IMF) has forecast that the UAE will continue to experience robust economic growth, estimating a steady 4% growth in 2025 despite a dip in oil production.

Non-Oil Sector Driving Growth

The IMF highlights that the UAE’s non-hydrocarbon sectors, notably tourism, construction, public spending, and financial services, are propelling this growth. These industries are expected to remain key contributors to the country’s economic momentum in the near future.

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Following a recent staff visit to the UAE, the IMF issued a statement discussing the country’s economic outlook, financial developments, and policy priorities. The UAE’s non-oil sector showed impressive performance, as evidenced by a notable rise in the S&P Global UAE Purchasing Managers’ Index (PMI), which hit a nine-month high of 55.4 in December, up from 54.2 in November.

Oil Sector And Inflation Outlook

Despite challenges in oil production, the IMF predicts a 2% growth in the oil sector, influenced by OPEC+ production cuts and the UAE’s cautious approach to increasing its OPEC+ production quota.

Inflation in the UAE is expected to remain manageable at around 2% in 2025, even with rising costs in housing and utilities. The IMF anticipates that capital inflows will continue to be strong, fueled by the country’s pro-business reforms, which should keep demand for real estate high and support price growth across various property segments.

Fiscal And Current Account Surpluses

The IMF projects a slight easing of the UAE’s fiscal surplus, predicting it will decrease to 4% of GDP in 2025, down from an estimated 5% last year. The current account surplus, however, is forecast to remain strong at about 7.5% of GDP. With international reserves still solid, the UAE is well-positioned to cover more than eight and a half months’ worth of imports.

Revenue Outlook

Despite the ongoing volatility in global oil prices, the IMF expects a decline in hydrocarbon revenue, alongside steady growth in non-oil revenues. The country’s implementation of a corporate income tax is expected to provide a consistent revenue stream in the coming years.

In its report, the IMF commended the UAE’s reform initiatives, noting that they play a crucial role in ensuring sustainable medium-term growth while also facilitating the country’s energy transition. The IMF emphasized the importance of a well-planned and sequenced approach to ensure the success of these reforms.

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Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

by THEFUTURE.TEAM

September 16, 2026

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

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Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.

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