ABU DHABI, 17th August, 2020 (WAM) — Michael Bolliger, chief investment officer for emerging markets at UBS Global Wealth Management, said he expects the UAE’s economy to grow by more than five percent in 2022.
Bollinger said, in an interview with the Emirates News Agency (WAM), that the UAE’s economy grew by 3.8% in 2021 thanks to appropriate government incentives and plans and the vaccination of all citizens and residents, referring to the growth in the non-oil sector. It also played an important role in the economic recovery.
Bollinger added that all indicators, including the Purchasing Managers’ Index (PMI) and the Business Confidence Index (BCI), showed that the growth of the non-oil sector remains strong after a strong start to the year, with the country’s GDP growing by 8.2% in the year. The first quarter of 2022, while oil-related GDP grew by 13%, in line with relevant OPEC+ agreements.
The rise in real income levels in the UAE, as a result of higher wages and employment rates, has helped support domestic demand and thus strengthen the wholesale, retail and real estate sectors in the UAE.
Bollinger said that the transportation, tourism and hospitality sectors also achieved a strong recovery in the past period, with increased numbers of tourists and hotel occupancy rates, noting the rapid recovery from the COVID-19 epidemic and the significant contributions of the non-oil sectors. Highlighting the economic diversification of the United Arab Emirates.
In addition, he indicated that the economies of the Gulf Cooperation Council countries will grow by 6.4% in 2022 and 3.4% in 2023. The global economy is heading downward due to the growing recession and GDP concerns. The United States was down 0.9 percent per second. Quarter of 2022 as fears of a recession mount in Europe.
Inflation remains a major concern for monetary policy makers worldwide, and the current inflationary dynamics leaves little room for less restrictive policies by central banks. In conclusion, he said, “We believe that the US Federal Reserve will continue to raise interest rates to reach 100 basis points by the end of 2022.”
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