The UAE central bank forecast the real GDP to grow by 2.4% in 2019, driven by faster growth in the oil sector.
The central bank forecast a 5% growth in the oil sector in 2019 compared to 2.8% in 2018 and non-oil sector growth of 1.4% in 2019, slightly faster than in 2018. The quarterly microeconomic index which is prepared by the UAE Central Bank about the non-oil activities, that it grew by 1.6% year-on-year in the first quarter of 2019, while the overall economic growth was robust, with an annual rise of 2.2%, supported by government activities and growing demand from the private sector.
The report also showed lower inflation in the CPI, during the first quarter of 2019, as the impact of VAT disappeared. On a quarterly basis, the private sector employment rebounded, rising 1.2% in the first quarter of this year.
Private sector deposits continued to rise during the first quarter as total credit continued to grow for most economic sectors. It is worth noting that the financial safety indicators also continued to support the UAE banking system.
Source (Alarabiya.net, Edited)
