Improved outlook for jobs and personal finance boost Abu Dhabi consumer confidence

Consumer confidence in Abu Dhabi jumped 10 per cent last year compared to 2012 as those surveyed felt the outlook for jobs and their personal finances had improved, the emirate’s Department of Economic Development said Tuesday.

The overall index registered 135 points – 100 equating to neutrality – with the individual financial conditions sub-index up 6.64 per cent year on year to 116, the confidence in government policies index up 10 per cent on the year to 127 and the future expectation sub-index up 14 per cent to 162 points.

“Consumers were optimistic about the decisions on price control mechanisms, and the effective role which the department of consumer protection played at the local or federal levels,” the department said.

“The level of optimism about consumer and individual future financial conditions was high, as the index stood at nearly 180 points in December 2013, compared to 175 points in December 2012.”

The IMF expects economic growth in the UAE for the year to be 4.4 per cent.

It upgraded its estimate for growth last year to 4.8 per cent.

“In the UAE, where real estate prices are rising at a fast pace, the award of World Expo 2020 has further strengthened growth prospects,” wrote the fund in its latest World Economic Outlook, released this month.

It forecast inflation in the UAE to ramp up to 2.2 per cent this year, compared with 1.1 per cent last year.

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