Government debt
Since 2015, economic growth has been more mixed due to a number of factors impacting both demand and supply. In 2017 and 2018 growth has been positive but on a low level of 0.8 and 1.4%, respectively. To support the economy the Government is currently following an expansionary fiscal policy. However, the effects of this policy are partially offset by monetary policy, which has been contractionary. If not for the fiscal stimulus in 2018, the UAE economy would probably have contracted in that year. One of the factors responsible for slower growth has been a credit crunch, which is due to, among other factors, higher interest rates. Government debt has remained on a low level, despite high deficits in a few recent years. Risks related to government debt remain low. Inflation has been picking up in 2017 and 18. Contributing factors were the introduction of a value added tax (VAT) of 5% in 2018 as well as higher commodity prices. Despite the Government's expansionary fiscal policy and a growing economy in 2018 and at the beginning of 2019, prices have been dropping in late 2018 and 2019 owing to oversupply in some sectors of importance to consumer prices.