The UAE economy is projected to grow by 7.6% this year, driven by both oil and non-oil sectors, the country’s central bank estimates. This compares with the mid-year forecast of 5.4% for 2022.
For 2023, overall real gross domestic product (GDP) is projected to grow by 3.9%, the Central Bank of the UAE (CBUAE) said in its latest quarterly economic review on Tuesday.
“There are increased chances for growth being stronger in 2022 due to mainly better-than-expected performance in some of the non-oil sectors such as tourism and hospitality, real estate, transportation and manufacturing,” the report noted.
Last October, International Monetary Fund (IMF) projected the UAE’s GDP to grow 5.1% this year, revising the previous estimate of 4.2%.
The UAE central bank said real oil GDP is projected to grow by 11% and 3% in 2022 and 2023, respectively. However, this will depend on the evolution of the Russia-Ukraine conflict, potential global economic slowdown, further OPEC+ decisions on production levels, potential reduction in output by some of the other OPEC members and further post-COVID recovery, it added.
The UAE’s oil production in Q3 averaged 3.17 million barrels per day, with the hydrocarbon GDP estimated to have grown 13%, the report said. The OPEC oil producer has benefitted from the steep rise in oil prices following the Russian invasion of Ukraine.
This report’s information was first seen on ZAWYA; to read more, click this link.
