Dubai: The UAE economy is rebounding fast from the downturn caused by COVID-19 and the prolonged decline in oil prices, according to the Institute of International Finance (IIF), a grouping of banks and financial institutions. The economy is thus expected to grow 4.9 percent next year and is higher than the UAE Central Bank’s latest forecast of 4.2 percent.
“We expect real GDP growth to pick up to 2.2 percent in 2021 and 4.9 percent in 2022, supported by one of the highest vaccination rates in the world, recovery in oil production, rebound in tourism, activities related to the rescheduled Expo 2020 in Dubai, and the September strategic vision to stimulate the economy,” said Garbis Iranian, Chief Economist – MENA, IIF.
The UAE’s growth strategy includes a series of new investments and measures to ease residency rules for ex-pats, which will enhance its status as a global hub for business and finance, and an attractive tourist destination, according to IIF. Consumer prices are forecast to remain broadly flat this year as compared with a deflation of 2.1 percent in 2020, on the back of higher global commodity prices and recovery in domestic demand.
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