World Bank expects UAE’s real GDP to grow by 5.9 pct in 2022

World Bank expects UAE’s real GDP to grow by 5.9 pct in 2022

The World Bank has said it expects the UAE’s real GDP to grow by 5.9 percent in 2022, while GCC economies are projected to grow 6.9 per cent across the six-member economic bloc this year.

The World Bank announced its new Gulf Economic Update (GEU) report on Monday where it said higher oil receipts supplemented with a gradual non-oil recovery in the Emirates will bolster fiscal revenue resulting in a fiscal surplus to hover around 4.4 percent of GDP in 2022, state news agency WAM reported.

Recent bilateral free trade agreements with Asian partners supported by strong oil exports will place the UAE's current account surplus at 11.2 percent of GDP in 2022, according to the report.

However, the bank expected the real GDP to moderate to 4.1 percent in 2023 as slower global demand may dampen growth due to tightening financial conditions.

Across the GCC, the easing of coronavirus-induced movement and social restrictions,­­­ and positive developments in the hydrocarbon market drove strong recoveries in 2021 and 2022, the World Bank said in its report released on Monday.

The report noted that the GCC region is “expected to register strong twin surpluses in 2022 and continue over the medium term. The regional fiscal balance is