World Bank raises UAE’s economic growth outlook

Unsplash.com/David Rodrigo

The World Bank has raised its UAE economic growth forecast for 2024 and 2025, citing robust non-oil sector growth and higher oil output.

The real GDP growth projection for the Gulf state was revised to 3.9 percent this year, up from its previous forecast of 3.7 percent in January, the World Bank said in its latest economic update for the Middle East and North Africa (Mena) region.

Similarly, the economic growth outlook for the UAE has been revised to 4.1 percent in 2025, compared to the earlier forecast of 3.8 percent.

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The current account surplus is anticipated to reach 8.4 percent in 2024 and 8.3 percent in 2025, with a surplus of 5.1 percent in the fiscal balance by the end of 2024 and 4.8 percent the following year.

In the broader Mena region, growth is forecast to reach 2.7 percent this year, returning to the low growth rates seen in the decade preceding the global pandemic. However, growth is expected to rebound to 4.2 percent in 2025.

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The GCC economies – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – are projected to see improved growth, reaching 2.8 percent in 2024 and 4.7 percent in 2025.

This increase is primarily driven by increased oil output resulting from the phased removal of oil production cuts and robust expansion in the non-oil sector propelled by diversification efforts and reforms.

The World Bank said the GDP per capita in the Mena region is expected to grow modestly to 1.3 percent in 2024 from 0.5 percent in 2023, driven primarily by the GCC economies.