UAE economy may drive regional growth in 2024
Date
4/24/2024 6:19:23 AM
(MENAFN) A recent poll conducted by Reuters has indicated that the United Arab Emirates (UAE) is poised to experience the fastest economic growth in the region this year. This optimistic outlook is attributed to the diversification of economic activities within the country and the rebound of non-oil sectors. According to the survey findings, the UAE's Economy is expected to expand by 4.0 percent in 2024, reflecting an upward revision from the previous estimate of 3.8 percent reported in January.
These projections align closely with forecasts provided by the Central bank of the Emirates, which anticipated a growth rate of 4.2 percent for the country's economy in 2024. Moreover, the Central Bank forecasted a further acceleration to 5.2 percent growth in 2025, surpassing the 3.1 percent growth recorded in 2023.
Furthermore, the World Bank revised its forecast for the UAE's real GDP growth, raising it to 3.9 percent for 2024, compared to the earlier projection of 3.7 percent made in January. This upward adjustment underscores growing confidence in the UAE's economic resilience and potential for sustained expansion.
Conversely, the poll indicated a downward revision in growth expectations for other economies in the region. The Saudi Arabian economy, for instance, is projected to grow by 1.9 percent in 2024, a decrease from the 3 percent forecast reported in January. This downward revision is attributed to lower oil prices and production restrictions imposed in the country.
Similarly, growth expectations for Qatar, Bahrain, and Kuwait have also been revised downwards for the year 2024. Qatar's growth forecast decreased to 2.2 percent, Bahrain's to 2.3 percent, and Kuwait's to 0.6 percent, down from the previous estimates of 2.4 percent, 2.8 percent, and 1.8 percent, respectively.
Overall, the UAE's robust economic performance, driven by diversified economic activities and the resurgence of non-oil sectors, positions it as a frontrunner in regional economic growth for the year 2024.
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