Banking & Finance
UAE Central Bank Forecasts Deeper Economic Contraction This Year
(Bloomberg) — The economy of the United Arab Emirates will suffer a deeper contraction this year than first estimated, dragged down by disruptions caused by the coronavirus pandemic, according to the country’s central bank.
Gross domestic product will shrink 5.2% in 2020, compared with a previous forecast for a decline of 3.6%, the central bank said in its quarterly review on Wednesday. GDP in the Arab world’s second-largest economy dropped an estimated 7.8% last quarter after a 0.8% contraction in the prior three months, it said.
“As a regional trade, tourism and transportation hub, the UAE economy was hit by the general ban on travel, while manufacturing production shrunk due to supply chain disruptions, limited export opportunities and subdued domestic demand,” the central bank said.
The outlook is slightly worse than forecasts compiled by Blomberg, which see a decline of 5.1% this year. The UAE economy last contracted by over 5% in 2009, according to the International Monetary Fund.
More from the report:
- Non-oil GDP shrank an estimated 9.3% in the second quarter, compared with a 2.7% drop in the previous quarter
- In the full year, the non-oil economy is projected to contract 4.5% because of the outbreak
- Forecasts assume an increase in government spending that will average close to 28% in 2020
- The central bank expects a recovery in employment
–With assistance from Sarina Yoo.
-
Highlights4 weeks agoOERLive: Top 10 Mathematical Problems AI Has Solved or Transformed
-
Magazines3 weeks agoOER Magazine July Edition 2026
-
Banking & Finance2 months agoOman Housing Bank launches digital waiting list for housing loans
-
Magazines3 weeks agoAl Mar’a Magazine July 2026
-
Alamaliktistaad Magazines3 weeks agoAlam Al-Iktisaad Magazine July 2026 Edition
-
Banking & Finance1 month agoOman Arab Bank CEO Sulaiman Al Harthi Retires as Ali Al Mani Is Named Successor
-
Banking & Finance1 month agoOERLive ANALYSIS: The Coldcard Hack Shows Why Bitcoin Self-Custody Remains Difficult for Ordinary Users
-
News1 month agoMade by Google 2026: Top 10 Biggest Launches You Need to Know – From the New Pixel 11 to a Life-Saving AI Watch
