UAE - Mubasher: The UAE economy is expected to contract in 2020 sharply more than anticipated by the International Monetary Fund (IMF) in April, according to the Director of the Middle East and Central Asia Department at the IMF, Jihad Azour.
In April, the IMF forecast that the UAE economy will shrink by around 3.5% this year; however, the economy would recover to register a growth rate of 3.3% in 2021.
Azour referred that the UAE is the second largest Arab economy and one of the most diversified oil-producing economies.
Amid the current crisis facing the world, the UAE has taken successful measures that helped in containing the coronavirus (COVID-19) pandemic and alleviating its economic repercussion, the IMF noted.
Meanwhile, the non-oil sectors in the GCC countries are projected to shrink by nearly 7.6% in 2020, but it will witness strong growth at 3.4% in 2021.
The GCC countries would see a deficit of 12% this year and 9.6% in 2021, as the economic effect of COVID-19 will be minimised.
