The International Monetary Fund (IMF) says the United Arab Emirates (UAE) is set to post its first fiscal deficit since 2009.

The UAE’s fiscal balance for this year is set to witness a shortage of 2.3 percent of the country’s gross domestic product (GDP) as compared with last year’s 5 percent surplus, the IMF said on Monday.

The GDP growth, the IMF predicted, would slow down to 3 percent this year, compared with the 4.5 percent growth last year.

Meanwhile, the US-based international organization has predicted that inflation in the UAE will rise further this year. The gloomy outlook for the economy of the UAE comes amidst the slump in oil prices, said the IMF.

Global oil prices fell to levels not seen in years because of an international supply glut in the lucrative market.

The downfall of the value of crude impacted mostly those countries that rely on oil exports as their biggest source of income.

The IMF has urged officials in the UAE to slow down on spending in raw materials and wages and to increase taxes.

HDS/HA