The economy of the UAE in 2023.. “The Central Bank” expects a growth jump

The UAE’s Central Bank raised its estimates of real GDP growth in the country to 4.2% next year 2023, compared to 3.3% earlier.

In its 2021 annual report, the Central Bank estimated GDP growth excluding oil to be 3.9% in 2023, compared to 3.3% in its previous estimates. She also expected oil GDP to grow by 5% in 2023, compared to 3.4% in its earlier forecasts.

The economic recovery in the UAE is estimated to be steadily gaining momentum, owing to supportive macroeconomic policies and an early and strong response to the financial and economic challenges posed by the “Covid-19” pandemic and its effects.

The Central Bank had expected the UAE’s real GDP to grow by 5.4% in 2022, after growing by 3.8% in 2021.

According to the Central Bank, GDP growth excluding oil rose to 5.3% in 2021 and is expected to reach 4.3% in 2022 in the light of sustainable government spending, positive credit growth expectations and improving business confidence.

Oil GDP is expected to grow by 8% in 2022 as a result of the projected recovery in global demand, the recovery of transportation and travel and the increase in production from OPEC members.

Economy of the UAE in 2021

The bank expected the UAE’s gross domestic product to rise to 5.4% this year.

The bank’s statement said the non-oil sector’s gross domestic product growth rose by 5.3% in 2021.

The statement also indicated that estimates of the current account surplus on the balance of payments rose from 77.5 billion dirhams ($21.1 billion) in 2020 to 176.2 billion dirhams ($47.9 billion) in 2021. due to the increase in oil and non-oil exports in addition to the increase in the surplus on the services balance.

The report confirmed that the level of economic activity in the UAE started to grow after it managed to contain the health and economic impact of the pandemic.

The Central Bank said these results support its estimates that the economic recovery in the UAE is steadily gaining momentum as a result of strong response to challenges and supportive macroeconomic policies.

Banking Performance of the UAE

The statement also discussed the bank’s key achievements in 2021, representing several axes, including following up on the implementation of the Comprehensive Economic Support Plan, strengthening efforts to combat money laundering and financing terrorism, and the measures taken to improve the flexibility of the UAE’s financial system.

The UAE’s central bank has confirmed that in 2022 it will continue to focus on ensuring financial stability and consumer protection through effective supervision of licensed financial institutions, strengthening the monetary framework and infrastructure for payments and investment in introducing new digital technologies.

The six Gulf Cooperation Council countries are expected to witness the fastest economic growth they have achieved in years by 2022, according to a Reuters poll of economists.

The rise in oil prices is one of the main factors driving the economy of the Gulf States. Twenty-five economists in the poll, conducted Jan. 11-19, expected the six countries to experience faster growth this year than expected three months ago.

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