The UAE's gross domestic product (GDP) grew by 3.6 per cent in 2023, according to the annual report of the Central Bank of the UAE (CBUAE). The CBUAE had previously forecast growth of 3.1 per cent in 2023. Non-oil sector GDP grew by 6.2 per cent during the period, while the oil sector posted a decline of 3.1 per cent.
Global economic context
According to the International Monetary Fund (IMF), the global economy grew by 3.1% in 2023. Thus, the UAE's economic growth in 2023 is outperforming the global performance.
UAE GDP growth forecasts
CBUAE gives the following forecasts for the UAE's GDP growth:
Forecast for 2024:
Total GDP: +3.9 per cent
Non-oil GDP: +5.4%
Oil GDP: +0.3%
Forecast for 2025:
Total GDP: +6.2 per cent
Non-oil GDP: +5.3%
Oil GDP: +8.4%
Inflation forecasts
The IMF forecasts that the global inflation rate will fall from 6.8% in 2023 to 5.8% in 2024. The UAE's inflation rate is significantly lower:
In 2023: 1.6 per cent
In 2024: 2.3 per cent is projected
Thus, the UAE's economic performance in 2023 shows strong growth and ahead of global rates, indicating the stability and promising outlook of the UAE's economy.
