United Arab Emirates Economic Outlook
September 3, 2019Growth was likely strong in the second quarter, as oil production expanded robustly in year-on-year terms—despite ongoing OPEC output cuts—which bodes well for the energy sector. The non-energy sector was also likely solid, as the PMI averaged higher in Q2 compared to Q1. This comes hot on the heels of a healthy first quarter, with increased oil output driving the energy sector and vigorous credit growth powering the private sector. Turning to the third quarter, the tapering of the PMI in July suggests growth will likely lose some steam. On the upside, oil output remained robust in the same month, reflecting maintenance works last year. Meanwhile, in late August, the government decided to halt the construction and financing of Dubai’s Al Maktoum airport project amid a stagnant tourism sector and subdued regional economic growth.
United Arab Emirates Economic GrowthThe economy is projected to accelerate this year, driven by robust government spending related to infrastructure projects for Expo 2020, as well as some deregulation in the private sector which should support foreign investment activity. That said, OPEC production cuts, weaker global growth and volatile oil prices pose downside risks to the outlook. FocusEconomics panelists expect GDP to increase 2.3% in 2019, which is unchanged from last month’s forecast, and 2.9% in 2020.
United Arab Emirates Economy Data
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United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Sep 04|
|Stock Market||0.1||0.75 %||Sep 04|
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United Arab Emirates Economic News
August 5, 2019
The IHS Markit Purchasing Managers’ Index (PMI) fell from 57.7 in June to 55.1 in July.
July 3, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) fell from 59.4 in May—the highest reading since October 2014—to 57.7 in June.
June 10, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) rose to 59.4 in May from 57.6 in April, the highest reading since October 2014.
June 2, 2019
Consumer prices rose 0.17% month-on-month in April, contrasting the 0.59% fall recorded in March.
May 5, 2019
Consumer prices fell 0.59% month-on-month in March, further declining from the 0.30% fall recorded in February.