The International Monetary Fund said that the United Arab Emirates was set for a slow economic recovery as it showed strong response to the crisis caused by the Covid-19 pandemic. The tourism industry has rebound from its sag but the return of the pandemic would make things worse again, IMF said.
Last year, UAE suffered a deep recession as the vital sectors of revenue like trade and tourism collapsed. The lowest oil prices in records weighed down the revenue from petroleum industry. The restrictions against Covid-19 pandemic struck a blow on the second largest economy of Gulf.
A contraction of 6.1% in gross domestic product was estimated by the International Monetary Fund in 2020, but it stated that the recovery had already begun gaining momentum. UAE’s early health care response has supported the economy to an extent, along with the economic policies that helped tourism and domestic activities to rebound. A steady and gradual economic recovery is expected for UAE by the end of 2021, according to the statement made by IMF on Thursday.
An economic growth and non-hydrocarbon growth by 2.1 percent and 3.8 percent respectively, are expected this year by the Central bank of UAE. IMF added that a non-oil GDP growth would also exceed 3 percent this year, as higher output in the petroleum sector would support the economic balance.