[ad_1]
The UAE economy is expected to grow by more than 5 percent in 2022, said Michael Bolliger, chief investment officer for emerging markets at UBS Global Wealth Management.
In an interview with the Emirates News Agency (WAM), Bollinger said the UAE’s economy will grow by 3.8% in 2021 due to appropriate government incentives and programmes and vaccination of all citizens and residents, noting that growth in non-oil industries is in It also played an important role in this economic recovery.
All indices, including the Purchasing Managers’ Index (PMI) and Business Confidence Index (BCI), showed that after a good start to the year, growth in the non-oil sector remained strong, with the country’s GDP rising by 8.2%. Oil-related GDP grew by 13% in the first quarter of 2022, in line with the related OPEC+ deal, he added.
He further added that the increase in real income levels in the UAE, due to rising wages and employment rates, has helped to support local demand, thus strengthening the country’s wholesale, retail and real estate sectors.
The transport, tourism and hospitality sectors have also seen a solid recovery over the past period as tourist numbers and hotel occupancy have risen, Bollinger said, noting that the rapid recovery from the Covid-19 pandemic and the non-oil sector highlighted the UAE’s economic diversification.
He stressed that the GCC economy will grow by 6.4% in 2022 and 3.4% in 2023. He noted that the global economy has entered a downward trend, with US GDP falling 0.9% in the second quarter of 2022, as recession fears intensify, while fears of a recession in Europe are rising.
Inflation remains a major concern for monetary policymakers around the world, and current inflation dynamics do not leave much room for central banks to ease restrictive policies.
“We believe the Fed will continue to raise rates to 100 basis points by the end of 2022,” Bollinger concluded.
[ad_2]
Source link