UAE – Mubasher: The real gross domestic product (GDP) of the UAE is estimated to grow by 1.8% by the end of 2019, compared to real GDP growth of 1.7% in 2018, according to a report by the World Bank.
The GCC state’s real GDP growth is forecast to hit 2.6% and 3% in 2020 and 2021, respectively, the international financial institution highlighted.
The World Bank also expected the UAE’s economic growth to recover over the medium term.
The pace of recovery will be muted this year as the Organization of the Petroleum Exporting Countries and allied producers led by Russia (OPEC+) have extended their oil production cuts until March 2020, the report indicated.
“The Abu Dhabi and federal budgets are expansionary in 2019, but less so in Dubai as most of the Expo-2020 infrastructure projects are complete,” the report noted.
The overall fiscal balance of the UAE is projected to return to deficit in 2019; however, it will gradually improve over the medium term, the World Bank pointed out.
