United Arab Emirates Economic Outlook
March 5, 2019The non-oil economy appears to have started 2019 on a solid footing. The PMI rebounded to a seven-month high in January after a lull at the end of 2018, signaling solid prospects in the non-oil sector thanks primarily to strong domestic demand. Employment growth, however, remains low due to ongoing pressure on firms’ margins. Meanwhile, though OPEC+ cuts weighed on oil production so far in Q1, crude oil prices consequently rebounded, which should buttress the government’s coffers going forward. Furthermore, the public sector will likely be a key driver of growth in Q1 and throughout the year, as the large fiscal stimulus approved both at the federal and emirate level should have begun lifting economic activity in the quarter.
United Arab Emirates Economic GrowthA strong fiscal stimulus focused on infrastructure investment in preparation for Expo 2020 should power growth this year. A recent landmark investment law and other business-friendly reforms also appear poised to attract qualified foreign workers and to boost FDI inflows. Nevertheless, slower global growth, trade protectionism and financial volatility constitute important downside risks. FocusEconomics panelists expect GDP to increase 3.0% in 2019, which is unchanged from last month’s forecast, and 3.3% in 2020.
United Arab Emirates Economy Data
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United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Mar 20|
|Stock Market||0.3||0.75 %||Mar 20|
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United Arab Emirates Economic News
United Arab Emirates: PMI slumps in February on falling employment amid steep price competition; production outlook worsens
March 5, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) fell from 56.3 in January to 53.4 in February, which marked its lowest level since October 2016.
United Arab Emirates: Consumer prices tumble sharply in January owing to high base effect from VAT introduction
March 4, 2019
Consumer prices fell 0.12% month-on-month in January, improving from the 0.31% decline recorded in December.
February 5, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) rose from 54.0 in December, its lowest level since October 2016, to a seven-month high of 56.3 in January.
January 23, 2019
Consumer prices fell 0.31% in December from the previous month, broadly matching November’s 0.30% decline.
January 10, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) fell from 55.8 in November to 54.0 in December, its lowest level since October 2016.