United Arab Emirates Economic Outlook
November 3, 2020The economy seemingly started to recover in the third quarter, after the second quarter’s sharp contraction. In September, the PMI moved back into expansionary territory and recorded the best reading in 11 months, signaling an improvement in the business conditions of the non-oil private sector. However, the reading showed that employment levels continued to decrease, albeit at a slower pace than in August. Moreover, oil production hit a near-decade low in Q3, amid constrained output and low global prices, likely weighing on government finances. Additionally, the sharp increase in new Covid-19 cases through September–October poses a threat to the recovery, as restrictions could be tightened again. In other news, on 20 October the UAE and Israel struck a preliminary deal for the oil exporter to send oil directly to Europe via an Israeli pipeline, boding well for the UAE’s oil exports.
United Arab Emirates Economic GrowthThe economy will contract this year, as the pandemic and low oil prices weigh on activity. Next year, GDP is expected to recover on the back of stronger aggregate demand as economies reopen globally. Nevertheless, downside risks remain: Uncertainty over the pandemic lingers, and further spikes in infections could dampen oil demand ahead. FocusEconomics panelists forecast GDP to expand 3.0% in 2021, which is unchanged from last month’s forecast, and 3.6% in 2022.
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
July 2, 2021
Consumer prices increased 0.25% in May over the previous month, moderating from the 0.44% rise logged in April.
June 30, 2021
Consumer prices increased 0.44% in April over the previous month, accelerating from the 0.06% rise recorded in March.
June 25, 2021
Consumer prices increased 0.06% in March over the previous month, swinging from the 0.41% drop recorded in February.
June 3, 2021
The IHS Markit Purchasing Managers’ Index (PMI) ticked down to 52.3 in May from April’s 21-month high of 52.7.
May 4, 2021
The IHS Markit Purchasing Managers’ Index (PMI) inched up to a 21-month high in April, clocking in at 52.7, up from March’s 52.6.