A Reuters poll of analysts' views showed mixed expectations about the contraction of GDP last year. Economists participating in the survey maintained their expectations that the economies of the region dependent on oil and gas will overcome their missteps this year, after being hit by the Corona pandemic and an unprecedented drop in the price of oil, the main export commodity to the Gulf countries.
According to the poll, the economy of the United Arab Emirates is expected to grow by 2.2 percent this year, down from an expected growth of 2.7 percent three months ago. Last month, the UAE witnessed an increase in the average daily number of Covid-19 cases over a seven-day period, to nearly three times.
The total output of the Emirates, the region's tourism and trade hub, is expected to shrink by 6.6 percent last year, compared to a 6 percent decline forecast released in October. While it is expected to grow by 3.5 percent in 2022.
The hotel occupancy rate and available room revenues in the UAE witnessed a strong rise last month, ending a difficult year for the sector in a better shape, but they are still below pre-pandemic levels. The report reveals that with the end of the holiday season and the tightening of travel restrictions since then in many countries due to the high number of Coronavirus infections, these high numbers of hotel occupancy and available room revenues are unlikely to continue in the first quarter of 2021. Based on the rapid distribution of vaccines, the expectations became more optimistic for the second half of 2021, especially in light of the launch of Expo 2020 in October.
Source (London-based Arab Newspaper, Edited)
