Mubasher: The International Monetary Fund (IMF) maintained its positive forecast for the UAE's economic growth at 4% in 2025, the highest in the Gulf, on Tuesday, with expectations of an increase to 5% in 2026.

In a recent report, the International Monetary Fund predicted that the Middle East and Central Asia region's economy would grow by 3% in 2025, rising to 3.5% in 2026, according to the Al Khaleej website.

As for the Gulf Cooperation Council countries, the fund expects the Saudi economy to grow by 3% in 2025, rising to 3.7% in 2026.

The Fund expects Kuwait's economy to grow by 1.9% in 2025, rising to 3.1% in 2026.

Qatar's economy is expected to grow by 2.4% in 2025, rising to 5.6% in 2026, while Bahrain's economy is expected to grow by 2.8% in 2025, rising to 3% in 2026.

The Fund estimates that the Sultanate of Oman's economy will grow by 2.3% in 2025 and 2026.

"We are entering a new era, where the global economic system that has operated for the past 80 years is being reset," IMF Chief Economist Pierre-Olivier Gourinchas told reporters.

The Fund noted that the rapid escalation of trade tensions and "extremely high levels" of uncertainty about future policies will have a significant impact on global economic activity.

"It's very significant, and it affects all regions of the world," Gourinchas said in an interview with Reuters. "We are seeing a decline in growth in the United States, in the eurozone, in China, and in other parts of the world."

"If we see an escalation in trade tensions between the United States and other countries, this will increase uncertainty, create additional volatility in financial markets, and lead to a tightening of financial conditions," he added, adding that this combined effect will further weaken global growth prospects.

"The weak growth outlook has already reduced demand for the dollar, but the adjustment in currency markets and portfolio rebalancing observed so far has been orderly," he said.

"We are not seeing a stampede or a run," Gourinchas added. "We are not concerned at this stage about the resilience of the international monetary system. It will take something much bigger than this."