United Arab Emirates Economic Outlook
September 8, 2020The economy is set to have contracted at a sharper pace in the second quarter, following Q1’s marked downturn, due to the impact of the Covid-19 pandemic. The joint effect of collapsing oil prices, falling oil production and global travel restrictions hammered economic activity in Q2. Moving into Q3, data suggests a recovery is underway: Although the PMI dipped in August, output and new orders continued to expand; Dubai reopened to international tourists in early July; and food outlets in Abu Dhabi have been operating at almost full capacity since late July. Moreover, on 8 August, the Central Bank announced measures to further ease lending to the economy, which should support the recovery in H2. On top of that, the 13 August deal between the UAE and Israel to normalize relations unlocks potential benefits for trade, investment and tourism in the country.
United Arab Emirates Economic GrowthGDP will contract this year as both the oil and non-oil sectors shrink due to depressed global demand and travel disruptions caused by the pandemic. Moreover, although oil prices have mildly recovered somewhat from April’s low, they still pose a threat to public finances. The uncertain development of the pandemic could continue to weigh on trade and tourism, clouding the outlook. FocusEconomics panelists forecast GDP to shrink 6.0% in 2020, which is down 0.4 percentage points from last month’s estimate, and to grow 3.0% in 2021.
United Arab Emirates Economy Data
5 years of United Arab Emirates economic forecasts for more than 30 economic indicators.
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United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Dec 31|
|Stock Market||0.1||0.75 %||Jan 07|
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United Arab Emirates Economic News
May 5, 2020
The IHS Markit Purchasing Managers’ Index (PMI) dropped to a new record low of 44.1 in April from 45.2 in March.
May 1, 2020
Consumer prices fell 0.89% month-on-month in March, following February’s 0.26% decrease.
April 14, 2020
Consumer prices fell 0.26% month-on-month in February, following January’s 0.09% decrease.
April 5, 2020
The IHS Markit Purchasing Managers’ Index (PMI) slumped to a record low of 45.2 in March from 49.1 in February.
March 3, 2020
Consumer prices fell 0.09% month-on-month in January, following December’s 0.23% decrease.