The World Bank has projected that the UAE’s non-oil economy will grow by 4.8 percent in 2023, following a contraction of 5.2 percent in 2020 due to the COVID-19 pandemic. The Bank’s latest UAE Economic Monitor report also said that the UAE’s real GDP is forecast to grow by 3.3 percent in 2021 and 4.1 percent in 2022.
The report added that the economy was expected to recover at a faster pace in 2021 and 2022, with a 4.1 percent growth rate in 2022. The rebound will be driven by the resumption of activity in the tourism, hospitality, and transportation sectors, as well as by a revival in consumer spending. The UAE’s fiscal deficit is also expected to narrow to 4.7 percent of GDP in 2021 from 8.4 percent in 2020.
The report stated that the UAE’s fiscal position has improved as a result of higher oil prices and prudent fiscal policy. The country’s current account is forecast to move into a surplus of 0.9 percent of GDP in 2021 from a deficit of 1.8 percent in 2020, as the value of imports is expected to decline in 2021.