UAE economy to fully recover in 2022 with 3.5 per cent GDP growth: Central Bank

  • Date: 18-Mar-2021
  • Source: Gulf News
  • Sector:Economy
  • Country:UAE
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UAE economy to fully recover in 2022 with 3.5 per cent GDP growth: Central Bank

Dubai: Economic activity in the UAE continued its recovery in the fourth quarter and the GDP growth is forecast to pick up to 2. 5 per cent and 3. 5 per cent, respectively in 2021 and 2022, according to the Central Bank of UAE (CBUAE). The CBUAE estimates real total GDP growth for the year 2020 to be -5. 8 per cent, with the real nonhydrocarbon GDP projected to decline by 5. 7 per cent. For 2021 and 2022, CBUAE foresees non-hydrocarbon real GDP to grow by 3. 6 per cent and 3. 9 per cent, respectively. The economic projections include exceptional uncertainty amidst COVID-19 repercussions and are thus subject to revisions, the CBUAE said in its quarterly review for the fourth quarter of 2020. Real non-oil GDP growth is expected to be driven by increasing fiscal spending, pick up in credit and employment, relative stabilization of the real estate market, boosted by recovery in confidence and the Dubai EXPO in 2021. In 2022, a full recovery is expected, with overall real GDP increasing. This will be the result of the continued fiscal spending growth, healthy banks' credit growth, strong improvement in employment and recovered business sentiment, with part of