The UAE’s economy is showing signs of recovery in 2021 driven by a successful vaccination programme and a reduction in Opec+ oil production cuts, said a new report.
13 October 2021, 12:00 AM
31 October 2021, 12:00 AM
The World Bank has projected UAE’s real GDP will average 3.4 per cent between 2021 and 2023. It projected 2.7 per cent GDP for 2021, 4.6 per cent for 2022 and 2.9 per cent for 2023.
In 2020, Covid-19 and its economic fallout led to a contraction of UAE real GDP by 6.1 per cent. Oil production declined by nine per cent in line with Opec+ production cuts.
However, a rebound is expected in 2021 and the UAE’s external position remains strong, with official reserves equivalent to 5.9 months of imports as of December 2020, according to the World Bank’s latest update.
“Over the medium term, the recovery will be bolstered by trade and tourism as health concerns wane... The authorities continue to work towards UAE’s long-run priority — diversification,” World Bank said in its latest update about the country.
“The rapid roll-out of Covid-19 vaccines is expected to boost domestic spending and lead to a recovery in tourism. This coupled with a recovery in global trade, rising oil production and higher oil prices, will support recovery in the medium term. Authorities have taken steps to lure tourists to the country for the World Expo, such as providing visas to fully vaccinated travellers, which is expected to provide a boost, albeit a milder one than previously projected, to the economy,” it said.