UAE's real GDP expected to grow 2.7% in 2021 – S&P

UAE's real GDP expected to grow 2.7% in 2021 – S&P

The UAE's economy is projected to grow 2.7% in 2021 and 2022, according to a recent report by S&P Global Ratings. S&P referred that the regional growth started to recover during the third quarter (Q3) of 2021, following a sharp contraction in the first half (H1) of 2020. The region's Q3-21 performance is driven by the rebound in oil prices to more than 10% above the fourth-quarter (Q4) 2019 average; however, travel and tourism sectors are still affected by the coronavirus (COVID-19) repercussions. The rating agency expected that the MENA-six economies, comprised of Egypt, Morocco, Qatar, Saudi Arabia, Tunisia, and the UAE, would expand 2.5% in 2021. Saudi Arabia, the UAE, and Egypt are predicted to achieve growth of more than 2% this year; however, growth rates would vary from next year to 2024. In 2023 and 2024, the UAE's real gross domestic product (GDP) is forecast to record 2%.