Dubai: The Central Bank has projected the UAE's GDP growth at 2.1 per cent for this year and which doubles during 2022 in its latest Quarterly Economic Review. The forecast for the current year hs been attributed to a decline in projected real oil GDP, stemming from OPEC+ announcements and the anticipated output schedule.
For 2022, CBUAE has its projections to 4.2 per cent in overall real GDP growth, up from 3.8 per cent previously, with the non-oil real GDP rising by 3.9 per cent. The revision is the result of increased public spending, banks’ credit outlook, higher employment and better business sentiment.
Non-oil growth
Non-oil sector continued to improve in Q2-2021, benefiting from a recovery in global travel and pick up in local and global demand, while the country continued to be a leader in containing the spread of the virus. The real non-oil GDP growth forecast for 2021 has been kept at 3.8 per cent. The CBUAE said the residential real estate market kept improving, with prices in Abu Dhabi registering year-on-year gains for a second consecutive quarter in more than five years.
Inflation outlook
Inflation remained negative in the second quarter of 2021. Based on its analysis, the Central Bank projects average CPI inflation for 2021 to remain at about -0.2 per cent and expects a move into positive territory in the second-half of 2021.
Remittances
In Q2-2021, outward personal remittances from UAE increased by 8.7 per cent or Dh3.6 billion year-on-year. There was a rise of outward remittances through banks by Dh6.1 billion, while transfers through exchange houses dropped by Dh2.5 billion.
- India (28.8%)
- Pakistan (12%)
- the US (6.9%)
- Philippines (6.2%)
- Egypt (6.1%)
