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Real GDP is an inflation-adjusted measure which reflects the values of final goods and services produced by an economy within a given year. It can show a more accurate trend of economic growth in a more efficient way. In this case, for the years 2004-2013, the United Arab Emirates’s real GDP performance,(as shown below) increased substainably from US$1478 Billion to US$3155 Billion which was the double of the former in year 2004 and 2008 respectively. This eventually diminished to US$2535 Billion in 2009, and again increased continuously to US$3904 Billion in 2013. It is a good deed for the United Arab Emirates’s economy to be back on the rails and do even better than the last time.The United Arab Emirates faced an economic crisis aound 2008-2009 owing to many reasons. One being the serious global financial crisis leading to the recession of UAE’s economy. The stock market was unstable and was in a continuous freefall at that time. The Dubai stock market fell 68.51% in November 2008 encountering an 1.3 billion dollars loss while the Abu Dhabi market fell 46.48% in June 2008 encountering an 1.52 billion dirham loss. There was also a violent drop in the price of crude oil. Another being the burst of real estate bubbles which caused a large amount of bad debts to the bank, resulting to the government having to bail them out. The UAE’s economy was in turmoil and that it induced the government to borrow money causing a huge sum of debt which nearly exceeded the affordability limit and was hard to get recovered.However, the government managed to get the economy back on track with strong rebound as it made a great effort to improve further on the export sector. More resources and capital were allocated to the manufacturing industries so as to develop a diversified economy and more importantly, diversify their source of income other than oil revenues. The amount of exports witnessed a dramatical rise from 2009 to 2013. Making such an extensive recovery, it is obvious that UAE’s economic performance is indeed strong.The Real GDP Growth Rate is the annual percentage change of a country’s real GDP to measure the economic growth adjusted for inflation. According to the Real GDP Growth Rate, United Arab Emirates was in an unsteady state which ranged from 4.9% to 9.8% between 2004 and 2006 but still stable in a way that no great changes occurred. Nevertheless, there was a dramatic change starting from 2007 and ended in 2011. It plummeted significantly to -5.2% in 2009. Once again, the unconstant but stable state of UAE’s real GDP growth rate began in the late 2011 to 2013 ranging from 5.8% to 6.4%.As mentioned in the Real GDP section, the UAE suffered from the economic crisis and then recovered. During this tough period, it replaced production with research and development. Its financial revenue no longer relies just on oil production and export but it started to develop non-oil industries including iron & steel, cement, electric power and agriculture so there were many other ways to expand income. The imports decreased while the exports increased. It highly contributed to the recovery of the economy. On the other hand, the UAE failed to maintain high stability of its GDP owing to the incremental amount of government expenditure on goods and services as well as the locals’ personal consumption expenditures. The higher gross private domestic investment was also an indispensable factor

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