The minister made the remark a day after an IMF report said that the UAE economy will grow at a pace of 3.3 per cent in 2009.

“It is impossible to forecast an accurate growth level for the UAE economy this year in the backdrop of the financial crisis,” Al Mansouri told journalists.

“Many experts are forecasting different growth rates for the UAE economy. Experts may predict something today and something else tomorrow. But I don’t want to forecast any growth rate in these troubled times. I don’t think anyone can forecast a realistic growth rate not only for the UAE, but for any part of the world,” the Minister said on the sidelines of the International Air Transport, Air Space Law and Regulation conference here on Wednesday.

According to the IMF report, the UAE economy would grow slower at 3.3 per cent this year before recovering to around five per cent during 2010–13. While investment bank EFG-Hermes predicted that the UAE economy would contract by 1.7 per cent, the Dubai International Financial Centre made a growth forecast of between 2.5 and 3.5 per cent for this year.

“We are seeing initial signs of recovery and stabilisation of the world economy.  We may see some growth in the UAE in the second half of this year, and 2010 will certainly witness a good growth. But much of the things related to the financial crisis are happening outside the UAE, and it is difficult to make a correct assessment of the impact of the changes happening outside on the UAE economy,’’ he said.

Asked about the possibility of the UAE facing a deflation he said, “I don’t want to use the term deflation and I don’t see its possibility. But the prices are coming down because of the global situation, and there are also positive dimensions to them. Last year we  had to manage high inflationary pressures, especially on food products, and we managed it well.’’

ramavarman@khaleejtimes.ae