The Central Bank recently released its Quarterly Economic Review for the second quarter of 2021.
The report states a 2.1% growth this year and a projected 4.2% increase next year, following the UAE’s actual production, Opec+ announcements and the pending output schedule from January 2021 to July 2021. The previous prediction of 3.8% climb in 2022 was revised by CBUAE as a result of increased public purchasing, banks’ credit outlook, higher employment and better business sentiment.
“The improvement reflects the better sentiment boosted by the wide vaccination program and Expo 2020 being only a few days away,” CBUAE said in its report.
The non-oil industry sees a continued improvement in the second quarter as global travel restrictions become lenient, with the UAE remaining to lead the fight against the spread of the COVID-19 pandemic. The actual non-oil GDP growth forecast for 2021 has been kept at 3.8%. As Abu Dhabi property prices register year-on-year gains for the second consecutive quarter in more than five years, CBUAE states real estate market is on a steady rise. “The UAE has made significant strides in becoming a global investor hub thanks to its corporate tax-free status, business friendly and stable environment, and state of the art infrastructure.” CBUAE added.
The CPI inflation is currently at -0.2% and by the second half of 2021, it is expected to move into positive territory. Outward personal remittances also rose by 8.7% or about AED 3.6 billion year-on-year. Outward remittances through banks raised to AED 6.1 billion and transfers through exchange houses dropped by AED 2.5 billion. India, Pakistan, the US, Philippines and Egypt were the five major countries of destination where a rise in outward personal remittances rose on an annual basis.