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Govt deposits hit 5-month high in Nov

Abu Dhabi - The UAE's government deposits surged 1.2 per cent to Dh492.384 billion in November from Dh486.552 billion in October 2015.

The government deposits rose to five months high in November by registering 8.57 per cent month-on-month growth, said the UAE Central Bank.
However, the deposits fell 18.8 per cent if compared to September 2014 when it rose to Dh208.142 billion.
The UAE's government deposits surged 1.2 per cent to Dh492.384 billion in November from Dh486.552 billion in October 2015.
Total deposit growth has slowed markedly in the last 12-months with a growth rate of two per cent, according to the central bank data.
The private sector deposits grew by a healthy 5.4 per cent in year-to-date period while government sector experienced a negative growth of 6.3 per cent, the data showed.
In the third quarter of 2015, fiscal revenues fell 31 per cent when compared to the same quarter of 2014. However, other revenues [representing a third of the total revenues] increased by 17 per cent.
"As a result of the drop in oil prices, the fiscal balances as well as the external current account balance have deteriorated in the last 12 months," the central bank's monthly outlook said.
The foreign currency deposits fell 3.95 per cent to Dh233.251 billion, according to the data.
"Foreign currency reserves growth is also flattening but still covers five-month of imports. This situation is aggravated by an appreciating dirham due to the peg to the US dollar, which could put a strain on non-energy export of the country," the outlook said.
The real economic growth for 2015 and 2016 reached at 4.5 per cent, which last achieved in 2014. Both have been downgraded since the fall in oil prices in autumn of 2014, against a consensus of three per cent and 3.1 per cent IMF forecast for 2016.
Moreover, total assets of the banking industry grew to Dh2.446 trillion in November compared to Dh2.42 trillion in October this year.
- haseeb@khaleejtimes.com