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Mon 23 Sep 2019 11:16 AM

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UAE economy to grow 2.4% this year, says central bank

The central bank's figures are lower than the IMF's forecast of 2.8% growth

UAE economy to grow 2.4% this year, says central bank
The central bank’s figures are lower than forecasts from the International Monetary Fund (IMF), which predicted that the UAE’s economy will grow by 2.8 percent in 2019.

The UAE expects its economy to grow 2.4 percent in 2019, compared to 1.7 percent growth in 2018, according data released by the UAE’s central bank.

The central bank’s figures are lower than forecasts from the International Monetary Fund (IMF), which predicted that the UAE’s economy will grow by 2.8 percent in 2019.

According to the CBUAE, the oil sector will grow 5 percent, compared with 2.8 percent the previous year. The non-oil sector is forecast to grow by 1.4 percent, faster than in 2019.

Growth was recorded as 2.2 percent in the second quarter, with non-oil real GDP rising 1.5 percent.

In a statement, the central bank said that “improved outlook for growth is due to expected rising public and private spending at the federal and emirate levels, higher investment ahead of the highly anticipated Expo 2020 and continued regional economy recovery, in light of the monetary easing in the US.”

Total government expenditure totalled AED 119 billion ($32.4bn) in Q1.

The IMF predicts global growth will be approximately 3.2 percent in 2019 and 3.5 percent in 2020, partially due to sluggish growth in developed economies, low productivity growth and rising market volatility.

In the US, growth is expected to decline to 2.6 percent this year, compared to 1.3 percent in the Eurozone and UK and 4.1 percent in emerging and developing countries. Growth in China is forecast at 6.2 percent and in India at 7 percent.