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The Central Bank raised its forecast for the growth of the UAE economy strongly for 2022, after recording a growth of 8.4% in the first quarter, which exceeded the previous expectations of the bank, which was 8.2%.
The raising of the growth forecast for the real GDP of the UAE to 6.5% in 2022 for the second time comes after previous expectations of 5.4% and before it 4.2%.
According to the recently released Q2 2022 Quarterly Economic Report, the overall real GDP continued its strong performance in the second quarter of 2022, after achieving strong growth of 8.4% year-on-year in the first quarter. This is due to the significant increase in oil production, as well as the marked improvement in the real non-oil GDP.
The central bank raised the growth forecast for oil GDP for the year 2022 from 8% in the previous reading to 11.5% in the current reading, while maintaining the expectations of non-oil GDP growth at 4.3%.
The Central Bank did not adjust its forecast for real output growth for 2023, as the increase in oil production is expected to offset the slowdown in global demand for non-oil exports of goods and services.
Total real GDP is expected to grow in 2022 and 2023 at 6.5% and 4.2%, respectively.
“There are increasing opportunities for growth to become stronger in 2022 due to higher oil production and better-than-expected performance in sectors such as tourism, hospitality, transportation and manufacturing,” the CBE report said.
