UAE Central Bank Expects 2.4 Pc GDP Growth In 2019
Mohammad Ali (@ChaudhryMAli88) Published September 22, 2019 | 09:45 PM
ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 22nd Sep, 2019) Real economic growth in the UAE, as estimated by Central Bank of the United Arab Emirates, exhibited Y-o-Y growth of 2.2 percent in Q2 -2019, lower than in the previous quarter.
The bank expects national economy to grow 2.4 pc in 2019, driven by faster growth in the non-oil sector.
Non-oil GDP growth is estimated to have grown from 0.3 pc in Q1 to 1.5 pc in Q2. However, oil GDP growth is estimated to have moderated from 12.4 pc in 2019 Q1 to 4 pc in 2019 Q2, according to the CBUAE's Quarterly Review.
The pickup in non-oil activities is also reflected in the rise in the Purchasing Managers' Index , which reached an average of 58.2 in Q2 2019. Meanwhile, employment in the private sector increased Y-o-Y by 1 pc in Q2 2019.
Y-o-Y CPI inflation remained negative in the second quarter at -1.6 pc due to negative inflation for both Tradables (-1pc) and Non-Tradables (-1.8pc).
In addition to the fading impact of the VAT, tradable inflation declined due to low international inflation and an appreciating Dirham, while nontradable inflation declined due to declining prices, particularly in housing.
In the second quarter of 2019, customer deposits at banks increased on a yearly basis led by a rise in government deposits. On the other hand, credit continued its growth, underpinned by healthy Financial Soundness Indicators (FSIs) that underline a sound and stable banking system.
The CBUAE balance sheet exhibited a slight increase in 2019 Q2, reflecting steady flows of foreign exchange and growth in the banking sector balance sheets. The increase in total assets of CBUAE was mainly in Cash and Bank Balances abroad, while on the liabilities side the increase was across Required Reserves, Certificates of Deposit and Currency Issued. Meanwhile, interest rates in the UAE witnessed a downward trend in line with the widely expected Fed’s policy rate cut.
The spread of EIBOR against the US Dollar LIBOR remained flat on average, reflecting confidence in the UAE economy, while the spread of the 10-year swap rate of the AED relative to the USD slightly increased, but remaining at a low level.
According to the review, the IMF has revised global growth downward to 3.2 percent for 2019 and to 3.5 percent for 2020, due mainly to sluggish growth in developed economies amid trade wars, low productivity growth, and rising market volatility; all these factors are having ripple effects on emerging economies. Growth is expected to decline this year to 2.6 percent in the US, 1.3 percent in both the Eurozone and the UK, and 4.1 percent in Emerging and Developing Economies, albeit projected growth remains relatively high in China (6.2 pc) and in India (7 pc).
Related Topics
Recent Stories
Selection committee dissolved over Pakistan women cricket team's poor performanc ..
Punjab CM Maryam Nawaz in police uniform at Chung police center
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
Today Gold Rate in Pakistan 25 April 2024
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
More Stories From Middle East
-
UAE announces ‘Zero Bureaucracy Program’ to reduce bureaucracy
3 months ago -
COP28 President-Designate welcomes Transitional Committee agreement to operationalise Loss and Damag ..
6 months ago -
Global Media Congress 2023 to feature Co-Production Majlis as a new networking platform
6 months ago -
Young female athletes shine at Abu Dhabi World Youth Jiu-Jitsu Championship
6 months ago -
King of Jordan receives Abdullah bin Zayed and ministers participating in Arab coordination meeting
6 months ago -
Abdullah bin Zayed participates in coordination meeting of Arab foreign ministers, joint meeting wit ..
6 months ago
-
3rd annual conference of Emirates Society of Clinical Microbiology kicks off in Dubai
6 months ago -
SIBF 2023 hosts Nobel laureate to discuss emergence of ‘Afrofuturism’ in global discourse
6 months ago -
ALC announces winners of Kanz Al Jeel Award 2023
6 months ago -
SIBF turns spotlight on remarkable contributions of women
6 months ago -
Global assets in spot bitcoin ETFs hit $4.16 billion
6 months ago -
Rescuers struggle to find Nepal quake survivors as deaths reach 157
6 months ago