The UAE Central Bank expected that the UAE economy will record a deeper contraction this year than was initially expected, due to the repercussions of the Coronavirus pandemic.
According to Arabiya Net, the central bank said, in its quarterly review on Wednesday, that gross domestic product will shrink by 5.2% in 2020, compared to a previous forecast of a decline 3.6%.
GDP fell by 7.8% in the last quarter after contracting by 0.8% in the previous three months, he said.
and the central bank said: As a regional center for trade, tourism and transportation, the UAE economy has been affected by the general travel ban, while industrial production has contracted due to supply chain disruptions and limited export opportunities, The domestic demand declined.
The forecast is slightly worse than the forecast compiled by Bloomberg, which forecast a decline of 5.1% this year. According to the International Monetary Fund, the UAE economy last contracted by more than 5% in 2009.
non-oil GDP contracted by 9.3% in the second quarter, compared to a decline of 2.7% in the previous quarter.
and in the entire year, the non-oil economy is expected to contract by 4.5% due to the outbreak of the Coronavirus.
The forecast assumes an increase in government spending, which will approach 28% in 2020.
On the other hand, the UAE Central Bank expects a recovery in employment.
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