The Institute of International Finance raised the expectations of the recovery and economic growth of the UAE from 2.9% in its previous forecast last June to 3.1% in its recent report issued in the current month of October.
The institute expects that the UAE economy will contract by 5.7% this year, due to the consequences of the pandemic. However, it is likely to record a strong growth rate next year as economic activities return to normal levels. Indicating that the consequences of "Covid-19" will lead to a contraction of the global economy in the current year at a rate of 4.2 percent, to return and recover next year, with a growth of 5.3 percent. The US economy is likely to record a contraction of about 5.3% this year, and grow again next year at a rate of 4.4%.
The institute expects the growth of the Chinese economy to decline to 2.2% this year, and return to grow strongly next year, registering around 8.5%, and according to the institute's estimates, India's economy will shrink this year as a result of the consequences of the pandemic by about 11.3%, to recover strongly in 2021, with growth expected to reach 13.1%. It is likely that the average contraction of emerging market economies will reach 4.8% in 2020, to return to growth in the next year at a rate of 4.2%.
Source (Al Khaleej Newspaper-UAE, Edited)