The Central Bank of the UAE (CBUAE) has raised its forecast for the Gross Domestic Product (GDP) growth for the UAE in the coming year, 2024, to 5.7 percent, compared to its previous projection of 4.3 percent, WAM reported.
The bank stated in a recently released report that the overall GDP for the country is expected to grow by 3.1 percent in the current year, 2023.
The report anticipates a non-oil GDP growth of 5.9 percent in 2023 and 4.7 percent in the following year, while estimating the oil GDP growth at 8.1 percent in 2024.
The Central Bank clarified that the UAE economy recorded a 3.8 percent year-on-year (YoY) growth in the second quarter of the current year, compared to 8 percent recorded in the same period last year, aligning similarly with the first quarter of the current year.
It mentioned that the non-oil GDP growth accelerated to 7.3 percent YoY in the second quarter of the current year, up from 4.5 percent YoY in the previous quarter and 6.4 percent YoY compared to the same period last year.
According to the report, government revenues reached AED 246.9 billion, constituting 26.4 percent of the GDP on an annual basis during the first half of 2023. Meanwhile, total expenditures amounted to AED 199.5 billion, accounting for 21.3 percent of the GDP on an annual basis.
According to WAM, the Central Bank's report highlighted the continued robustness of non-oil private sector economic activity. The Purchasing Managers' Index (PMI) for the UAE surged to 57.7 in October, marking its highest level since June 2019. The improvement in working conditions was propelled by a sharp rise in both business activity and new orders, particularly in new export orders, growing at the fastest pace in over four years.
The report also indicated that the PMI data generally signalled strong growth in the non-oil sector in the third quarter and in October. Companies remained optimistic about expectations over the next twelve months.
