Full UAE recovery in 2022: Central Bank

Issac John /Dubai Filed on March 18, 2021 | Last updated on March 18, 2021 at 09.57 pm

The economic activity in the UAE continued its recovery in the fourth quarter of 2020.

The UAE will have a full recovery in 2022 while pivoting to positive growth this year after recording a deep contraction in 2020, the Central Bank of the UAE said on Thursday.

The road to full recovery will be driven by a continued surge in fiscal spending, healthy banking sector credit growth, strong improvement in employment and recovered business sentiment, with part of Dubai Expo 2021 taking place in 2022 as well, the apex bank said.

For 2021 and 2022, CBUAE foresees real total GDP to resume growth by 2.5 per cent and 3.5 per cent, respectively, and non-hydrocarbon real GDP to grow by 3.6 per cent and 3.9 per cent, respectively. "However, economic projections include exceptional uncertainty amidst Covid-19 repercussions and are thus subject to revisions," the CBUAE said in its Quarterly Economic Review.

The economic activity in the UAE continued its recovery in the fourth quarter of 2020.


Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.

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