'US recovery will put an end global financial crisis'

US recovery will put an end global financial crisis

DUBAI - Economic recovery in the United States, the world’s largest economy, will end the global financial crisis and will help economies of other countries to bounce back including that of the UAE, Foreign Minister Shaikh Abdullah bin Zayed Al Nahyan said on Thursday.

By (Staff Report)

Published: Fri 18 Dec 2009, 11:37 PM

Last updated: Thu 2 Apr 2015, 3:48 AM

He said the debt problems of the emirate of Dubai have been taken care of, which shows that the country is united both politically and economically and that the leadership is committed to dealing with all the negative impacts of the global crisis.

“I believe the (global) crisis will be behind us once the United States recovers and we believe the United States is recovering, which will reflect on other countries,” he told newswire Reuters in an interview during his trip to the Palestinian city of Nablus.

The dollar jumped to a two-month high against the euro on Friday as positive US economic data boosted the odds that the Federal Reserve will begin the process of lifting interest rates soon. Analysts said the dollar’s gains were driven by the possibility that the Fed, reacting to more vigorous US economic activity, will raise interest rates to curb inflation, thereby increasing the appeal of the US unit. US retail spending rose 1.3 percent in November, according to government data that offered fresh optimism for the troubled American consumer going into the critical holiday shopping period.

The Commerce Department report on retail sales, seen as a key to renewed economic growth, was much stronger than analyst expectations for a 0.6 percent rise. Investors also took heart from the University of Michigan consumer confidence index, which registered a rise in December that beat analyst expectations at 73.4.

“The economic crisis in Dubai is over,” Shaikh Abdullah said, adding that the UAE government was “committed to dealing with the effects of the global crisis” for all member emirates. He said support from the federal government “is proof that the UAE is united politically and economically. It is also proof that UAE remains committed towards local government to deal with effects of the global economic crisis.”

The Government of Dubai last Monday announced that it would pay off $4.1 billion in debt repayments due on an Islamic bond of property developer Nakheel. It said that the Government of Abu Dhabi has agreed to provide $10 billion to support its plans to manage the debt of its flagship conglomerate Dubai World. Financial markets in the UAE and across the world cheered the move. Concerns over Dubai’s debt have since eased.


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