UAE Central Bank projects real GDP to grow by 7.6% in 2022
A bird’s-eye view of the Dubai skyline.
The UAE Central Bank again raised its expectations for the growth of the UAE economy strongly for the year 2022, to reach 7.6% in the economic report for the third quarter of 2022, instead of its previous expectations of 6.5% that it issued in the second quarter report, and before that at initial expectations of 5.4%.
The Central Bank also raised non-oil GDP growth from its previous forecast of 4.3% for the whole of 2022, to 6.1%.
The Central Bank had raised growth expectations for the oil gross domestic product for the year 2022 from 8% in the previous reading to 11% in the second quarter reading.
Real gross domestic product continued to grow at a strong pace in the third quarter of 2022, after a strong increase in the first half of the year, driven by a further pickup in oil production, as well as a marked improvement in real non-oil GDP.
The central bank revised its forecast for real output growth in 2023; The non-oil sector is expected to perform better, continuing the trend set in 2022, while hydrocarbon production is expected to decline.
Real GDP is expected to grow by 7.6% in 2022 and 3.9% in 2023; There are increasing chances that growth will be stronger in 2022 due to better than expected performance in some non-oil sectors such as tourism, hospitality, real estate, transportation and manufacturing.
