UAE eyes 5.9% growth as GCC economy looks set to hit $2trln in 2022: World Bank

UAE eyes 5.9% growth as GCC economy looks set to hit $2trln in 2022: World Bank

Higher oil export volumes coupled with a revival in non-oil demand will support the UAE’s strong economic growth as the combined gross domestic product (GDP) of the GCC looks set to hit $2 trillion in 2022, the World Bank said.

Real GDP of the UAE, further underpinned by a favourable business environment and world-class infrastructure, is expected to grow by 5.9 per cent in 2022 before moderating to 4.1 per cent in 2023 as slower global demand dampens growth due to tightening financial conditions, according to the new Gulf Economic Update (GEU) from the Washington-based bank.

The International Monetary Fund’s recently revised World Economic Outlook report projects the UAE’s GDP to grow 5.1 per cent this year as compared to its previous forecast of 4.2 per cent. It would be the highest growth in the past seven years. The IMF projects the Middle East and North African GDP to grow by 5.0 per cent this year, up from 4.1 per cent in 2021, before slowing to 3.6 per cent in 2023 as global conditions worsen.

The economies of the GCC, on the other hand, according to the World Bank, are projected to expand by 6.9 per cent in 2022 before moderating to 3.7