The United Arab Emirates' central bank said on Wednesday it expects real GDP growth to reach 4.2 percent next year, up from its earlier forecast of 3.3 percent.
The central bank estimated the non-oil GDP growth to reach 3.9 percent in 2023 compared with previous estimates of 3.3 percent, while the oil GDP growth to reach five percent in 2023 compared with earlier estimates of 3.4 percent.
The bank had projected real GDP growth to reach 5.4 percent in 2022 after the growth jumped to 3.8 percent in 2021.
According to the estimates of the central bank, the non-oil GDP growth rose 5.3 percent in 2021, and is expected to reach 4.3 percent in 2022 in light of sustainable government spending, a positive outlook for loan growth, and the improvement in business sentiment.
The oil GDP growth is anticipated to grow 8 percent in 2022, due to the expected recovery in global demand, as well as the recovery of the transport and travel sector, and production increase of OPEC member countries.
On the other hand, the bank’s statistics showed that credit facilities granted by national banks to the business and industry sectors in the country rose by 2.6 billion dirhams ($707 million) in two months.