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UAE Central Bank Expects 2.4% GDP Growth in 2019

UAE Central Bank Expects 2.4% GDP Growth in 2019

Monday, 23 September, 2019 - 11:30
FILE PHOTO: A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. REUTERS/Christopher Pike

UAE Central Bank expects the national economy to grow 2.4 percent in 2019, driven by faster growth in the non-oil sector compared to 1.7 percent in 2018, the Bank announced Sunday.

The UAE consolidated government expenditure rose to AED119 billion (USD32.4 billion) during the first quarter of 2019, a growth of 21.6 percent as compared with the same period in 2018.

Meanwhile, employment in the private sector increased Y-o-Y by 1 percent in Q2 2019.

Real economic growth in the UAE, as estimated by Central Bank, exhibited Y-o-Y growth of 2.2 percent in Q2 2019. The non-oil GDP growth is estimated to have grown to 1.5 percent in Q2.

In its Quarterly Review, CBUAE said UAE government expenses went up by 16.3 percent during Q1 2019.

“Moreover, capital spending, measured by the net acquisition of non-financial assets, rose Y-o-Y by 94.1 percent, reaching AED13.1 billion (USD3.6 billion). As a result, the Net Operating Balance registered a deficit of AED1.2 billion (USD326 million) in 2019 Q1 compared to AED10.4 billion (USD2.8 billion) surplus in the previous quarter.”

On the other hand, other revenues offset the decline in tax revenues as they rose by AED5.3 billion (USD1.4 billion), or 9.5 percent, to reach AED61.2 billion (USD16.6 billion) compared to AED55.9 billion (USD15.2 billion) in the same quarter of 2018.

Social contributions remained relatively stable at AED1.3 billion (USD843 million) in 2019 Q1.

The Central Bank announced that gross bank assets, including bankers’ acceptances, rose by 0.3 percent, increasing from AED2.975 billion (USD809 billion) at the end of July 2019, to AED2.983 trillion (USD812 billion) at the end of August 2019.

The gross credit grew by 0.2 percent from AED1.705 billion (USD464 billion) at the end of July 2019, to AED1.707 billion at the end of August 2019.

In the second quarter of 2019, customer deposits at banks increased on a yearly basis led by a rise in government deposits. On the other hand, credit continued its growth, underpinned by healthy Financial Soundness Indicators (FSIs) that underline a sound and stable banking system.

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