United Arab Emirates Economic Outlook
April 2, 2019Economic growth in the first quarter of 2019 appears to have been modest, according to available data. In the oil sector, production cuts agreed to by the UAE in an OPEC+ deal since early January likely kept output subdued and dragged on growth, though they supported prices. Meanwhile, growth in the non-oil economy fell to an over two-year low in February after a solid start in January, according to PMI data. The non-oil private sector remains mired in a difficult competitive environment, with firms slashing prices to attract new business and shedding jobs to keep costs down. Moreover, recently-released data shows the economy—while still rebounding from 2017—fared less well than expected last year. Notably, growth in Dubai fell to a nine-year low in 2018, largely on the back of feeble commercial and residential real estate markets due to falling prices and oversupply.
United Arab Emirates Economic GrowthThe non-oil sector should drive growth this year, supported by a large fiscal stimulus in preparation for Expo 2020. Recent business-friendly reforms also appear poised to attract qualified foreign workers and to boost FDI inflows. Nevertheless, slower global growth, trade protectionism and fragility in Dubai’s property markets constitute important downside risks. Met the why particular panelists expect GDP to increase 2.9% in 2019, which is down 0.1 percentage points from last month’s forecast, and 3.3% in 2020.
United Arab Emirates Economy Data
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United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Apr 12|
|Stock Market||0.3||0.75 %||Apr 12|
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United Arab Emirates Economic News
United Arab Emirates: PMI slumps in February on falling employment amid steep price competition; production outlook worsens
March 5, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) fell from 56.3 in January to 53.4 in February, which marked its lowest level since October 2016.
United Arab Emirates: Consumer prices tumble sharply in January owing to high base effect from VAT introduction
March 4, 2019
Consumer prices fell 0.12% month-on-month in January, improving from the 0.31% decline recorded in December.
February 5, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) rose from 54.0 in December, its lowest level since October 2016, to a seven-month high of 56.3 in January.
January 23, 2019
Consumer prices fell 0.31% in December from the previous month, broadly matching November’s 0.30% decline.
January 11, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) fell from 55.8 in November to 54.0 in December, its lowest level since October 2016.