AMF forecasts 4.2% growth for UAE economy in 2023

AMF forecasts 4.2% growth for UAE economy in 2023

The UAE's economic growth is expected to remain robust, averaging 4.6 percent from 2022 to 2024, driven by higher oil prices and improved business confidence, according to the Arab Monetary Fund (AMF). The AMF's "Arab Economic Outlook Report" forecasts a 4.2 percent growth rate for the UAE in 2023, accompanied by a decline in the consumer price index to 2.9 percent in 2023 and 2.57 percent in 2024.

With stable oil and gas prices and lower prices for basic goods, such as agricultural products, the report projected a 3.4 percent growth for Arab economies, accompanied by tighter monetary policies to curb inflation.

The report also showed that Arab countries with economic reform programmes and strategies to diversify their economies, improve their resilience, enhance their business environments, empower the private sector and invest in human capital are more able to cope with economic shocks.

According to the report, the economic growth rate of Arab countries will rise to 4 percent in 2024, mainly due to the expected stability of oil and gas prices, basic goods prices, and controlled inflation.

Higher energy prices will boost the economic growth of major Arab oil exporters in 2023 and 2024, with their economies expected to grow by 3.4 percent