The World Bank raised the UAE’s growth forecast for 2024 by 1.1% to 3.4%. The revision is based on factors such as increased oil production, reform efforts, and new investments. The UAE is anticipated to maintain steady growth at 3.4% in the coming two years. According to the World Bank, the UAE will be the fastest-growing economy in 2024 and 2025.
“The growth outlook for oil exporters in 2024 has improved since January, reflecting an assumed rebound in oil production, the expected effects of reform initiatives, and investment drives in Saudi Arabia and the UAE,” the global lender said in its Global Economic Prospects report released on Tuesday.
However, the World Bank has reduced the UAE’s GDP growth forecast for 2023 by 1.3% to 2.8%. This downward revision is attributed to limited oil production and stricter financial conditions. The production cuts implemented by OPEC+ have also led to reduced growth forecasts for other oil-exporting nations.
The World Bank has reduced the 2023 projection for the GCC region by 1.3% to 2.4%, but increased the 2024 projection by 0.8% to 3.2%, according to Khaleej Times. In the Middle East and North Africa (MENA) region, the growth forecast has been reduced by 1.3% to 2.2% for 2023, while the 2024 forecast has been raised by 0.6% to 3.3%. Oil-exporting economies experienced strong growth in 2022 due to high oil prices and ongoing recoveries in the services sectors.
Purchasing managers’ indexes in oil exporters indicated expansion in the first half of 2023. The World Bank predicts a sharp decline in global growth from 3.1% in 2022 to 2.1% in 2023. Emerging markets and developing economies face increased risk of financial stress due to elevated global interest rates.
