“Fitch” expected the UAE economy to register a strong recovery starting this year, due to the increase in the number of Covid-19 infections around the world, which would affect the recovery of the tourism sector in the UAE.
“Fitch” forecasts indicate a sharp recovery in activity after a 6.1% contraction during the year 2020. The agency indicated that the increase in oil production in OPEC will enhance the increase in external demand for exports, while the increase in the rates of vaccine distribution in the UAE and preparations for the exhibition “Expo Dubai 2020" will support the gradual recovery in domestic demand and tourism activity.
The agency also expects the UAE to achieve a 4.1 percent of GDP growth in 2022, up from its previous forecast of 3.9 percent, reflecting higher oil production under the new OPEC+ agreement, and a more sustainable recovery in the services sector and strong domestic consumption. The agency’s forecasts for 2021 and 2022 are much higher than the average growth rate in the UAE of 3% in the five years prior to the “Covid-19” crisis, which means that the economy will return to the levels of activity that the UAE was in before the crisis in 2022.
Source (Al Khaleej Newspaper-UAE, Edited)
