United Arab Emirates Economic Outlook
July 7, 2020The economy shrank 1.0% in the first quarter (Q4 2019: +0.8%) as the non-oil sector took a heavy hit from lockdown measures enacted in March: Tourism was all but suspended and non-essential businesses closed at the end of the quarter due to the escalating coronavirus pandemic. The oil sector tempered the fall somewhat amid surging production in March following the breakdown of OPEC+ output cuts. However, the second quarter likely saw both spheres of the economy decline: PMI readings in April–June suggest private-sector activity generally contracted in the quarter, while oil production tumbled in May following the renegotiated OPEC+ production cuts earlier in that month. Moving to the third quarter, the lifting of pandemic curfews in late June bodes well for private consumption and business activity from July onwards.
United Arab Emirates Economic GrowthThe economy is projected to contract this year as both the oil and non-oil sectors shrink amid dissipating global demand and constrained household consumption. The duration of the outbreak and its impact on the global flow of people and trade presents a considerable downside risk to the outlook. FocusEconomics panelists forecast GDP to shrink 5.0% in 2020, which is down 0.6 percentage points from last month’s estimate, and to grow 3.2% in 2021.
United Arab Emirates Economy Data
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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.