UAE economy shifts from recovery to solid growth

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The UAE central bank’s forecast is justified by major macroeconomic trends over the past 12 months, such as a healthy increase in public spending
Image Credit: Bloomberg

For nearly two years, the UAE’s economy has carefully charted its course through massive global economic turbulence caused by multiple waves of Covid-19 infection.

The latest growth forecasts from the UAE Central Bank (CBUAE) exude confidence in the UAE’s ability to transform the gradual economic recovery achieved over the past 18 months into solid growth in 2022 and beyond. The CBUAE’s quarterly economic review for the third quarter of 2021 forecasts a GDP of 4.2% for 2022, double the growth achieved in 2021, supported by healthy growth in the oil and non-oil sectors.

The central bank’s forecast is justified by major macroeconomic trends over the past 12 months, such as a healthy increase in public spending, positive outlook for credit growth, increased employment and a better business climate. supported by Dubai Expo 2020 and expected tourism gains from events such as the FIFA World Cup in Qatar this year.

Total commitment

From the onset of the Covid-19 crisis, authorities in the United Arab Emirates were convinced that it is not fear, but rather courage, courage and a strong commitment to public safety and unwavering support for the national economy which should guide the nation through this unprecedented cataclysm.

Almost two years after the start of the pandemic, the UAE has largely succeeded in addressing concerns about public health and economic recovery.

The rapid fiscal and monetary policy support measures of the government and the Central Bank of the United Arab Emirates (CBUAE) have contributed to the resilience of the economy and the banking system. While huge monetary support such as CBUAE’s Dh256 billion Targeted Economic Support Program (TESS) helped keep the banking system abundantly liquid, this move maintained the solvency of the private sector in the face of an economic downturn. massive world.

Health and security

The country has succeeded in limiting the health impact of Covid-19 due to its relatively young population, extremely successful vaccination program, and a range of effective containment measures, which have mitigated the spread of the virus and the number of deceased.

While supporting the economy and people’s livelihoods in the midst of the crisis, the authorities have never lost their focus on public health and safety. There is no doubt that the gradual reopening of the economy in the second half of 2021 has paved the way for stable and stronger GDP growth prospects for the current year.

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