UAE’s growth prospects brighten amid weak global outlook

UAE’s growth prospects brighten amid weak global outlook

The UAE’s GDP is expected to expand by over five per cent in 2024, surpassing the 2.8 per cent growth expected for the global economy, economists and analysts forecast.

While the global economy remained subdued operating at subpar growth levels, economists at Standard & Poor's (S&P) Global Ratings estimate that UAE GDP expanded at over three per cent in 2023, including close to six per cent growth for the non-oil sector.

The World Economic Forum’s latest survey of chief economists finds that the global economic outlook is “fraught with uncertainty,” with some 56 per cent of them saying that they expect the global economy to weaken in 2024. About 87 per cent of respondents in the WEF survey expect recent geopolitical developments to stoke global economic volatility in the next three years, and eight out of ten expect it to heighten volatility in stock markets.

“Amid accelerating divergence, the resilience of the global economy will continue to be tested in the year ahead,” WEF managing director Saadia Zahidi said in the forum's latest Chief Economists Outlook report.

The International Monetary Fund expects the global economic growth to fall slightly in 2024 to 2.9 per cent, from three per cent last year.

Tatiana Leskova, Associate Director