UAE - Mubasher: The World Bank Group (WB) has raised its economic growth estimate for the UAE, expecting a 4.5% contraction in 2020, down from 7.1% as foreseen in its January report.
WB predicts that the UAE's gross domestic product (GDP) will grow by around 1.4% in 2021, compared to the 1.6% decline shown in its January 2020 projections, according to the recently published 'Global Economic Prospects' report.
In the January report, the bank projected a 2.4% economic growth in the Middle East and North Africa (MENA) region.
However, the June report forecasts that the economic activity in MENA would retract by around 4.2% due to the coronavirus (COVID-19) and the latest developments in the global oil market.
The economic contraction of the region's oil-exporting countries will reach nearly 5% this year, against a previously expected 2% growth.
The bank further referred that the GCC economies will contract by an average of 4.1% in 2020 amid the low oil prices and the COVID-19 economic impact.
