While some are in a state of denial about rising inflation, others already priced it in. Few even laid out an action plan how to beat the assets eating monster!
According to the report released by the National Bureau of Statistics, UAE’s economy grew 1.4 percent in real terms in 2010. Business Monitor International has said in a new forecast that the local economy is on course to see 3.3 percent growth in 2011, with Abu Dhabi outperforming Dubai. Analysts polled by Reuters in March said they forecast the Emirates economy to expand by 3.4 percent this year.
Emerging out of recession and marching trough recovery, the economy’s statistics show up positive numbers, which is very encouraging to business people and investors. How this greenish development translates into the pockets of the average consumer is a whole different story!
You don’t need to be an economist to figure that out. You just need to pay attention! Prices are scary at the petrol stations. Inflation is hitting at the supermarket and even the local grocery store.
Consumers feel their income is not going up at all, while the cost of nearly everything they buy IS going up. In recent recruitment survey 82.4% of Middle East professionals desire a career change, motivated by the hope for better payout check at the end of the month.
When oil prices go up every supplier of products up and down the supply chain feel it, because freight costs go up, ocean shipping costs go up, and airline costs go up too. The increases get passed along as surcharges and extra fees. Even cruise ships have figured out how to tack on extras to cover the increased cost of fuel.
Henceforth, people will need bigger paychecks to be able to afford what they need, and companies should plan for solid predictable growth.
