The Central Bank of the UAE (CBUAE) has raised its UAE Gross Domestic Product (GDP) growth forecast for next year, 2024, to 5.7 per cent, compared to its previous projection of 4.3 per cent. hundred.
The bank said in a report released today that the country’s overall GDP is expected to grow by 3.1 percent in the current year, 2023.
The report anticipates non-oil GDP growth of 5.9 percent in 2023 and 4.7 percent in the following year, while estimating oil GDP growth at 8.1 percent in 2024.
He central bank clarified that the UAE economy recorded year-on-year (YoY) growth of 3.8 per cent in the second quarter of the current year, compared to 8 per cent recorded in the same period last year, similarly aligning with the first quarter of the current year.
He mentioned that non-oil GDP growth accelerated to 7.3 percent year-on-year in the second quarter of the current year, compared to 4.5 percent year-on-year in the previous quarter and 6.4 percent year-on-year compared to the same period last year.
Turning to the non-oil sectors of the economy, the report highlighted significant expansions in financial services, insurance, construction, wholesale and retail trade, leading to an adjustment in the expected growth rate for 2023 and 2024 to 5.9 percent and 4.7 percent, respectively. .
It stated that the unified financial surplus during the first half of the current year amounted to AED 47.4 billion, or 5.2 percent of GDP, compared to a surplus of 13.4 percent during the same period in 2022.
According to the report, government revenue reached AED 246.9 billion, representing 26.4 percent of annual GDP during the first half of 2023. Meanwhile, total expenditures amounted to AED 199.5 billion, representing 21.3 percent of annual GDP. .
He central bankThe report highlighted the continued strength of non-oil private sector economic activity. The UAE Purchasing Managers’ Index (PMI) rose to 57.7 in October, marking its highest level since June 2019. The improvement in working conditions was driven by a sharp increase in both business activity and of new orders, particularly new export orders. growing at the fastest pace in more than four years.
The report said PMI data generally indicated strong growth in the non-oil sector in the third quarter and in October. Companies remained optimistic about expectations for the next twelve months.
The report also noted an increase in Dubai’s PMI to its highest level since August 2022, reaching 57.4 in October. The substantial increase in new orders, which expanded at the fastest pace since mid-2019, was the main driver of the overall increase, boosting business confidence to its highest level in more than three years.
He clarified that, in line with the resilience of economic activity, employment in the private sector continued to expand rapidly. The number of employees in this sector reached a proportion 5.5 percent higher in September than the previous year, and total salaries in the private sector increased 8.2 percent annually.
The influential PMI survey pointed to an increase in employment in the United Arab Emirates to cope with the sharp increase in new orders at the end of the third quarter of the current year and until October.
News source: Emirates News Agency