Comparison for 2025 and 2026 for the European Union, the United States, and the United Arab Emirates (UAE), of Projected Economic Growth (GDP) and Government Debt as a Percentage of GDP

Comparison of Projected Economic Growth (GDP) and Government Debt as a Percentage of GDP

Below is an overview of the projected economic growth (GDP) for 2025 and 2026 for the European Union, the United States, and the United Arab Emirates (UAE), based on recent forecasts from institutions such as the European Commission, the IMF, and the OECD.

🇪🇺 European Union (EU)

YearProjected GDP Growth20251.1%20261.5%

For the eurozone specifically, growth is expected at 0.9% in 2025 and 1.4% in 2026. This modest growth is influenced by global trade slowdowns and increased tariffs. However, a recovery is anticipated in 2026, driven by rising consumption and investments.

🇺🇸 United States (US)

YearProjected GDP Growth20251.6%20261.5%

The US economy faces challenges such as higher import tariffs and policy uncertainty, leading to slower growth compared to previous years. (Source: Investopedia.com)

🇦🇪 United Arab Emirates (UAE)

YearProjected GDP Growth20254.0%20265.0%

The UAE demonstrates strong growth prospects, driven by performance in sectors such as technology, renewable energy, and infrastructure. The IMF forecasts growth of 4.0% in 2025 and 5.0% in 2026.

Government Debt as a Percentage of GDP (2025–2026)

Below is an overview of the projected government debt as a percentage of GDP for 2025 and 2026 in the EU, US, and UAE:

🇪🇺 European Union (EU)

• 2025: Government debt in the eurozone is expected to rise to 89.6% of GDP.
• 2026: A further increase to 90.0% of GDP is anticipated. (Source: TradingEconomics.com)

This upward trend is attributed to ongoing budget deficits and economic challenges within the EU.

🇺🇸 United States (US)

• 2025: Federal government debt is estimated at 124.4% of GDP.
• 2026: While specific figures for 2026 are not available, a continued increase in the debt-to-GDP ratio is expected.

The US is facing growing budget deficits and rising debt, raising concerns about the sustainability of federal finances.

🇦🇪 United Arab Emirates (UAE)

• 2025: Government debt is projected to decrease to 30.3% of GDP.
• 2026: A further decline to 30.1% of GDP is forecast.

The UAE benefits from strong economic growth and a favourable fiscal position, contributing to a decreasing debt ratio.

📊 Summary Table

Country/Region2025 (% of GDP)2026 (% of GDP)EU89.6%90.0%US124.4%n/aUAE30.3%30.1%

Note: “n/a” indicates that specific data for 2026 is not available.

Conclusion

The UAE maintains a relatively low government debt-to-GDP ratio, reflecting a strong fiscal position. In contrast, both the EU and the US are experiencing rising debt levels, indicating potential challenges in fiscal policy and long-term economic stability.

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