UAE Central Bank Raises 2024 GDP Growth Forecast to 5.7%

The Central Bank of the UAE (CBUAE) has revised its Gross Domestic Product (GDP) growth forecast for 2024, raising it to 5.7%, compared to the previous projection of 4.3%. 

The bank’s report also highlights a 3.1% expected overall GDP growth for the UAE in 2023.

The report foresees non-oil GDP growth at 5.9% in 2023 and 4.7% in 2024, with oil GDP growth estimated at 8.1% in 2024. The bank emphasizes accelerating non-oil GDP growth to 7.3% year-on-year in Q2 2023.

Fiscal Performance and Economic Activity Indicators:

The report notes a unified financial surplus of Dh47.4 billion in H1 2023, equivalent to 5.2% of the GDP. 

Government revenues reached Dh246.9 billion, accounting for 26.4% of the GDP, while total expenditures amounted to Dh199.5 billion (21.3%).

Private Sector Resilience and Employment Trends:

The Central Bank’s report highlights the robustness of the non-oil private sector, with the Purchasing Managers’ Index (PMI) reaching 57.7 in October, signaling strong growth. 

The PMI data indicates a surge in private-sector employment and increased wages, with companies remaining optimistic about future expectations.