KHALEEJ TIMES, Saturday, May 13, 2023 | Shawwal 23, 1444
UAE economy hits one of fastest growth rates in the world, says Central Bank
Emirates:
The UAE economy will grow at a faster pace next year as both oil and
non-oil sectors are expected to perform better, according to the Central Bank's
(CBUAE) annual report released on Wednesday.
The country's gross domestic product (GDP) is projected to have grown at 7.6 per
cent last year, almost double the rate recorded in the previous year. This is
also one of the fastest growth rates in the world.
The growth rate is likely to slow down to 3.9 per cent this year but the pace
will pick up again next year, with GDP forecast to expand to 4.3 per cent,
showed the CBUAE annual report.
“Real oil GDP is projected to grow by 3 per cent and 3.5 per cent in 2023 and
2024, respectively,” it said, adding that the evolution of the Russia- Ukraine
conflict, the heightened risk of a global slowdown, and the possibility of
further Opec+ cuts to oil production could influence the forecast.
Non-oil GDP growth is estimated to have accelerated to 6.6 per cent in 2022 from
5.8 per cent in 2021 due to a variety of factors — including the lifting of most
Covid-19-related restrictions; the resulting recovery in global travel and
tourism, real estate and construction sectors; the expanding manufacturing
activity; and increased activity associated with world-class events such as Expo
2020 Dubai and Fifa World Cup in Qatar.
For 2023 and 2024, the Central Bank projected real non-oil GDP growth to slow to
4.2 per cent and then accelerate to 4.6 per cent, respectively, in line with
global growth trends.
Covid support measures terminated
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice-President, Deputy Prime
Minister, and Minister of Presidential Affairs of the UAE, and Chairman of the
Board of Directors of the Central Bank, said that in its capacity as the
macro-prudential authority for the UAE, the apex bank terminated most temporary
support measures aimed at helping the country cope with the pandemic.
This decision, he said, reflected the banking system’s return to pre- pandemic
financial strength.
The UAE posted a fiscal surplus of Dh169.6 billion ($46.19 billion) in the first
nine months of 2022, a 165 per cent increase from the same period of 2021, the
CBUAE said on Wednesday.
Revenues rose 35.6 per cent from January to end-September 2022 to Dh453.7
billion on the back of "strong oil and non-oil growth and favourable oil
prices", it added in its annual report.
Total spending was up five per cent year-on-year to Dh248.1 billion in the
nine-month period. Capital spending — measuring net investment in non-financial
assets — fell nearly 20 per cent to Dh10.9 billion.
Current spending rose 6.3 per cent to Dh273.1 billion due to "a general increase in all spending categories except subsidies," the CBUAE said.