UAE - Mubasher: The Central Bank of the UAE (CBUAE) expected a 6% contraction in the UAE's gross domestic product (GDP) in 2020, compared to its previous forecast of a 5.2% decline.
The real non-hydrocarbon GDP is projected to decrease by about 5% in the current year, according to the CBUAE's quarterly economic review.
In 2021, the CBUAE forecasts that the UAE's real total GDP and non-hydrocarbon real GDP would grow by 2.5% and 3.6%, respectively.
The CBUAE's outlook is better than that of IMF which expected a 6.6% shrink in the UAE economy in 2020.
Meanwhile, the UAE is expected to see a contraction in the real oil GDP in 2020, driven by an average oil production of 2.8 million barrels per day for this year.
In line with OPEC+ agreement, the UAE oil production decreased by 4.1% year-on-year (YoY) in the second quarter (Q2) and by 17.7% in the third quarter (Q3).
"As an oil exporter, the UAE is likely to feel the fallout from reduced global demand for oil due to the contraction of economic activities worldwide, including transportation and international travel," the report referred.
It is noteworthy to mention that in September, the CBUAE expected a 5.2% decrease in the UAE GDP in 2020 due to the coronavirus (COVID-19) pandemic,
