UAE’s consumer spending expected to grow 4% in 2021

UAE’s consumer spending expected to grow 4% in 2021

UAE - Mubasher: The consumer spending in the UAE is expected to grow by 4.1% year-on-year (YoY) in 2021, compared to a 5.7% contraction in 2020 due to coronavirus (COVID-19), according to a report by Fitch Solutions.

The food commodities category is forecast to grow by 3.7% in 2021, occupying the third position among the other categories in household spending.

Meanwhile, the share of furnishings and household equipment in total household expenditure would record a 4.7% growth in 2021.

Spending on clothes and shoes will take the second position in total household expenditure, with a 4% growth.

The report referred that improving economic growth in 2021, recovering oil prices, a revival of international tourism, and government stimulus measures will support disposable incomes in the UAE. 

Hence, the average annual disposable income in the UAE is predicted to nominally grow by 12.4% year-on-year (YoY), versus a contraction of 19.6% in 2020.