The UAE Central Bank expected the economy to likely shrink by 3.6% this year after the slowdown in economic activity due to the Coronavirus pandemic.
The UAE economy contracted by 1% in the first quarter of this year, on an annual basis, as the non-oil GDP fell by 3%, unlike the GDP of the oil and gas sector, which increased by 3.7% on an annual basis.
According to a report issued by the Central Bank for the first quarter of this year, while the decline in economic activity is expected to be followed by a sharp contraction in the following quarters of the year, it is expected that the contraction of growth other than the energy sector will be 4.1% in 2020. Noting that the total output of the oil and gas sector is expected to shrink by 2.4% this year.
According to the central bank, it is expected that the recovery of economic activity will start in the second half of the year, but the recovery of economic sentiment will depend on the support measures, noting stimulus programs from the central bank itself, the UAE, and federal governments. It also expects the employment activity to decrease in the second and third quarters, and then recover in the fourth quarter of the year.
Source (Al-Arabiya.net website, Edited)