World Banks hikes UAE’s 2024 growth forecast by 1.1% to 3.4%

World Banks hikes UAE’s 2024 growth forecast by 1.1% to 3.4%

UAE economy to grow at the fastest pace in GCC over the next 2 years

The UAE is expected to see sustained growth of 3.4 per cent over the next two years. — KT file

Published: Tue 6 Jun 2023, 8:20 PM

The World Bank on Tuesday revised the UAE’s growth forecast for next year upwards by 1.1 per cent to 3.4 per cent on higher oil output, reform initiatives and fresh investments.

The UAE is expected to see sustained growth of 3.4 per cent over the next two years and will be the fastest-growing economy during 2024 and 2025, it said.

“The growth outlook for oil exporters in 2024 has improved since January, reflecting an assumed rebound in oil production, the expected effects of reform initiatives, and investment drives in Saudi Arabia and the UAE,” the global lender said in its Global Economic Prospects report released on Tuesday.

However, the international financial institution revised the country’s GDP growth downwards for 2023 by 1.3 per cent to 2.8 per cent due to constrained oil production and tightening financial conditions. As a result of a cut in production by Opec+, it slashed the growth forecast of other oil-exporting nations too. Opec+ members have announced production cuts twice