UAE’s real GDP growth to reach 4.2% next year

In its annual report for 2021 released this week, the central bank had projected real GDP growth to reach 5.4 per cent this year after the growth jumped to 3.8 per cent in 2021

The central bank estimated the non-oil GDP growth will reach 3.9 per cent in 2023 compared with previous estimates of 3.3 per cent. — File photo

Muzaffar Rizvi

Published: Wed 8 Jun 2022, 5:33 PM

Last updated: Wed 8 Jun 2022, 9:20 PM

The Central Bank of the UAE said on Wednesday it expects real GDP growth to reach 4.2 per cent next year, up from its earlier forecast of 3.3 per cent, state news agency (Wam) reported.

In its annual report for 2021 released this week, the central bank had projected real GDP growth to reach 5.4 per cent this year after the growth jumped to 3.8 per cent in 2021.

The central bank estimated the non-oil GDP growth will reach 3.9 per cent in 2023 compared with previous estimates of 3.3 per cent, while the oil GDP growth will reach five per cent in 2023 compared with earlier estimates of 3.4 per cent.

On Tuesday, the World Bank said the UAE economy is projected to grow 4.7 per cent this year and will ease to 3.4 per cent and 3.6 per cent in 2023 and 2024, respectively.

The International Monetary Fund (IMF) recently said that the UAE’s economy will grow at 4.2 per cent this year while it is projected to grow 3.8 per cent in 2023, the latest data released by IMF’s World Economic Outlook shows.

The central bank report highlights the results achieved in terms of the UAE’s economic activity, which has begun to flourish again as a result of the country’s overall economic support measures and its success in containing the financial and economic challenges resulting from the Covid-19 fallout.

The non-oil GDP growth rose to 5.3 per cent in 2021, and is expected to reach 4.3 per cent in 2022, in light of sustainable government spending, positive outlook for loan growth and the improvement in business sentiment, according to the estimates of the central bank.

The oil GDP growth is anticipated to grow eight per cent in 2022 due to the expected recovery in global demand, as well as the recovery of the transport and travel sector, and production increase of Opec member countries.

— muzaffarrizvi@khaleejtimes.com