Coronavirus set to deliver 5.2% GDP blow to UAE economy in 2020

Coronavirus set to deliver 5.2% GDP blow to UAE economy in 2020

Latest central bank forecasts show a deeper contraction this year than first estimated, dragged down by disruptions caused by the pandemic

The economy of the UAE will suffer a deeper contraction this year than first estimated, dragged down by disruptions caused by the coronavirus pandemic, according to the country's central bank.

Gross domestic product will shrink 5.2 percent in 2020, compared with a previous forecast for a decline of 3.6 percent, the central bank said in its quarterly review on Wednesday.

GDP in the Arab world's second-largest economy dropped an estimated 7.8 percent last quarter after a 0.8 percent contraction in the prior three months, it said.

“As a regional trade, tourism and transportation hub, the UAE economy was hit by the general ban on travel, while manufacturing production shrunk due to supply chain