United Arab Emirates Economic Outlook
February 6, 2018The non-oil economy continues to purr along at the start of 2018. The non-oil PMI was well in positive territory in January thanks to greater output and new orders from home and abroad, while employment growth was the fastest in 12 months and wage growth picked up. On the downside, real wages are likely to come under pressure from higher inflation this year following the introduction of 5% VAT on 1 January. The hydrocarbon sector continues to be held back by OPEC oil production cuts, although the recent significant uptick in oil prices is good news for the already solid fiscal position. On the back of higher oil prices, the slew of 2018 budgets presented by different emirates and the federal government over the last few months are more fiscally expansionary, with Dubai’s budget containing a notable uptick in infrastructure spending as part of preparations for the 2020 World Expo.
United Arab Emirates Economic GrowthGrowth should rise sharply this year, as higher oil prices support confidence and financial conditions. The non-oil sector will also benefit from capital spending on the Dubai 2020 World Expo, while a looser fiscal stance will provide further impetus. Downside risks stem from regional instability—particularly concerning the ongoing dispute with Qatar—and potential oil price volatility. Met the why particular panelists expect GDP to rise 2.8% in 2018, which is down 0.2 percentage points from last month’s forecast, and 3.2% in 2019.
United Arab Emirates Economy Data
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United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Feb 20|
|Stock Market||0.4||0.75 %||Feb 19|
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United Arab Emirates Economic News
February 5, 2018
The Emirates NDB Purchasing Managers’ Index (PMI) dipped from December’s multi-year high of 57.7 to 56.8 in January.
January 23, 2018
Consumer prices rose 0.69% in December from the prior month, contrasting November’s 0.03% decline.
January 4, 2018
The Emirates NDB Purchasing Managers’ Index (PMI) increased from 57.0 in November to 57.7 in December.
December 26, 2017
Consumer prices dipped 0.03% in November compared to the prior month, contrasting October’s 0.97% rise.
November 24, 2017
Consumer prices rose 0.97% in October compared to the prior month, accelerating from September’s 0.13% increase.