The UAE economy is poised for stronger growth, recovery and prosperity in the second half of the year, despite the geopolitical fallout currently facing the global economy, a report said.
This is backed up by the UAE’s economic success record, which has seen it designated as an innovation-driven economy, Waam News Agency reported.
The resilience of the domestic economy, which has weathered the recovery phase from the impact of the Covid-19 pandemic, is reflected in the positive forecasts of international agencies and banks, including the IMF and World Bank.
Such international recognition is a testament to the durability of the UAE economy amid global geopolitical turmoil and adverse economic conditions, thereby validating the success of the forward-looking vision of the UAE leadership, the Wam report said.
The International Monetary Fund recently said: “Positive economic growth is expected in the UAE, with gross domestic product (GDP) projected to grow by 3.6% this year, driven by strong domestic activity.”
Following an impressive growth rate of 7.9 per cent in 2022, the UAE economy is expected to grow by 2023, benefiting from sustained tourism activity and higher capital expenditure, the IMF said in its 2022 Article IV Assessment. Maintain an upward trajectory.
The World Bank expects the UAE’s real GDP to grow by 2.8% in 2023, with the non-oil sector expected to post strong growth of 4.8%, driven by strong domestic demand, especially tourism. Real estate, construction, transportation and manufacturing, the report said.
At a recent press conference in Dubai, where the World Bank announced a new Gulf Economic Update (GEU), titled “Health and Economic Burden of Non-Communicable Diseases in the GCC,” bank officials said the UAE’s current account balance was projected to It will also rise to 11.7% by 2023. The report predicts that the UAE’s public fiscal surplus will reach 6.2% in 2023.
The international testimony is in line with the UAE Central Bank’s forecast in its quarterly economic review, which said the UAE economy continued to grow solidly in the first quarter of 2023, “reflecting the strong performance of non-economies”. Growth in the oil sector was partly offset by a slowdown in the oil sector of the economy. Growth in 2023 was revised down by 0.6 percentage point to 3.3%, reflecting the agreement to cut oil production agreed by OPEC+ members. The non-oil sector is expected to continue to support total output, albeit at a more modest pace than in 2022. “
The UAE economy is expected to grow further this year for a number of reasons, including the fact that the purchasing managers’ index rose to its highest level in five months, in May this year. The seasonally adjusted S&P Global UAE Purchasing Managers’ Index, a composite measure designed to provide an accurate overview of economic operations in the non-oil private sector, came in at 55.5 in May, pointing to a strong improvement in the sector’s performance. While the index fell to a three-month low from 56.6 in April, it remained above the unchanged mark of 50.0 and its long-term average, the report said.
S&P Global said the strong growth in new business underscored growing confidence in the economic outlook among surveyed companies. Expectations for next year’s economic activity improved for the fifth straight month in May, reaching the highest level since late 2021.
The UAE’s progress in implementing the Comprehensive Economic Partnership Agreement will help improve trade and integration into global value chains, and attract more foreign direct investment, boosting national economic growth.
Such partnerships are an important driver of economic growth, creating trade and investment opportunities and helping to bolster the dynamism of regional and global trade and investment flows, the Wahme report said.