The Central Bank of the UAE (CBUAE) has revised its GDP growth outlook for 2024, expecting a 5.7% expansion, up from the previous projection of 4.3%.
The apex lender anticipates an overall GDP growth of 3.1% in 2023, with a non-oil GDP growth of 4.7% in 2024, compared to the current year’s 5.9%. Meanwhile, oil GDP is forecasted to grow by 8.1% in 2024.
In the second quarter of 2023, the UAE economy saw a year-on-year growth of 3.8%, a decline from the 8% recorded in the same period last year, aligning with the first quarter of the current year.
CBUAE highlights a robust non-oil GDP growth of 7.3% year-on-year in the second quarter, up from 4.5% in the previous quarter and 6.4% compared to the same period last year, according to Gulf Business.
The latest data from CBUAE reveals notable expansions in financial services, insurance, construction, wholesale, and retail trade in non-oil sectors, adjusting the expected growth rates for 2023 and 2024 to 5.9% and 4.7%, respectively.
During the first half of the current year, the unified financial surplus amounted to Dhs47.4 billion, constituting 5.2% of the GDP, compared to a surplus of 13.4% during the same period in 2022.
Government revenues reached Dhs246.9 billion, accounting for 26.4% of the GDP annually in the first half of 2023. Total expenditures amounted to AED 199.5B, representing 21.3% of the GDP on an annual basis.
In October, the UAE Purchasing Managers’ Index (PMI) surged to 57.7, its highest level since June 2019, driven by increased business activity and new orders, particularly in new export orders. Companies remained optimistic about the next twelve months.
Dubai’s PMI also increased to 57.4 in October, the highest level since August 2022, with a substantial rise in new orders boosting business confidence to its highest level in over three years.
