UAE Central Bank has raised its 2024 economic growth forecast to 5.7%

The Central Bank of the UAE (CBUAE) has revised its 2024 Gross Domestic Product (GDP) growth forecast upward to 5.7%, a notable increase from its previous projection of 4.3%. This updated outlook, as reported by WAM, reflects the bank’s positive outlook for the country’s economic performance in the upcoming year.

The bank’s recent report indicated an anticipated overall GDP growth of 3.1% for the current year, 2023. For 2023, a non-oil GDP growth of 5.9% is expected, with a projection of 4.7% for the following year. Additionally, the report estimated oil GDP growth to reach 8.1% in 2024.

Highlighting the economic trajectory, the report noted a 3.8% year-on-year growth in the UAE’s economy in the second quarter of the current year, showing a parallel trend with the first quarter’s performance. The non-oil GDP also demonstrated strong growth, accelerating to 7.3% year-on-year in the second quarter, up from the previous quarter and compared to the same period last year.

Government revenues reached AED 246.9 billion during the first half of 2023, representing 26.4% of the GDP annually, while total expenditures amounted to AED 199.5 billion, accounting for 21.3% of the GDP on an annual basis.

The report highlighted the robustness of the non-oil private sector’s economic activity, citing the Purchasing Managers’ Index (PMI) reaching 57.7 in October, the highest level since June 2019. This surge was propelled by increased business activity, new orders, and particularly strong growth in new export orders, the fastest pace seen in over four years.

Furthermore, the PMI data indicated strong growth in the non-oil sector in the third quarter and October, signaling positive sentiments among companies regarding future prospects over the next twelve months.

The CBUAE’s revised forecast underscores the resilience and positive trajectory of the UAE’s economy, reflecting the ongoing strength and potential for growth in various sectors.