The United Arab Emirates’ economy grew by an estimated 8.2% in the first quarter, buoyed by higher oil production, the central bank said on Wednesday. Real gross domestic product (GDP) is expected to grow 5.4% this year and 4.2% next year, the central bank said. There was a high probability of stronger growth due to higher oil production and a government pledge to double the manufacturing sector’s size by 2031.
Hydrocarbon GDP climbed an estimated 13% in the first quarter, when oil production average 2.95 million barrels per day.
“Shocks to global oil supply and demand have added to oil price volatility and bolstered the level of the price. Depending (on) the developments in global economic activity, recessionary expectations and geopolitical tensions, there may be space for increased oil supply to balance the markets and stimulate global growth,” the central bank said.
The UAE’s oil GDP is expected to grow 8% this year and 5% in 2023. Non-oil GDP was up 6.1% in the first quarter and was seen growing 4.3% in 2022 and 3.9% in 2023, the central bank said.
Inflation was projected at 5.6% for 2022. It reached 3.4% in the first quarter from a year earlier, up from 2.3% annual inflation in the fourth quarter and 0.6% in the third quarter.
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