Ricardo Hausmann: UAE has great opportunities in resuming economic growth locally and worldwide

DUBAI, Dr. Ricardo Hausmann, founder and Director of Harvard’s Growth Lab stated the UAE has various investment opportunities enabling the country to resume economic growth locally and lead the resumption of global growth through developing a successful coronavirus vaccine to manufacture and distribute it worldwide.

Speaking at the interactive session titled “Resuming Economic growth in Post-COVID-19” on the second day of the “UAE Remote Meeting: Preparations for the post-coronavirus, COVID-19, period”, facilitated by Huda Al Hashimi, Assistant Director General for Strategy and Innovation, in the Prime Minister’s Office at the Ministry of Cabinet Affairs and the Future.

He added that the UAE economic growth will help the world and governments resuming its work, which will reflects positively on UAE’s future growth, considering the country one of the major global economic centers.

Hausmann said that UAE has an open economy, through the presence of multinational and international companies that are managed from their headquarters in Dubai, which reinforces the development of other sectors such as tourism and travel. “The UAE’s open economy necessitates launching economic policies to support the private sector in overcoming challenges posed by COVID-19,” he added.

“One of the best policies to adopt looking at UAE’s Economic Model is the reduction of public expenditure policy so that the country works on reducing its spending equaling it to long-term revenues and thus enable the public and private sectors to reduce deficiencies,” Dr. Hausmann said, adding that those percussions need to adapt with the expectations of oil prices during the coming period.

“The UAE has greater capabilities compared to other countries, in having a greater ability to get out of this crisis easily because of investing in sectors other than oil, and setting fiscal policies to deal with the global challenges,” he added.

He stated that the UAE would be able to overcome these challenges due to that fact that it has high liquidity and fiscal space that enables it to support the private and government sectors and facilitate their work to succeed.

Dr. Hausmann emphasised that the global economic sector will not recover, unless 80 percent of the world’s population is immune to COVID-19, requiring the global cooperation in producing and distributing a vaccine.

Dr. Hausmann also discussed the policies and scenarios other countries is studying in lockdowns considering Household structure, international contacts, transport systems, and geographic spread.

The “UAE Remote Meeting: Preparations for the post-coronavirus, COVID-19, period” embodies the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE, Prime Minister and Ruler of Dubai, to bring together more than 100 officials, ministers and heads of governments at the federal and local levels, from 10th-12th May, to examine the implications of the COVID-19 pandemic and explore key ways to overcome this crisis, by establishing a comprehensive response strategy that includes action plans and government policies for sectors closely related to people’s lives.

 

Source: Emirates News Agency

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