UAE economy set to grow by 4% in 2024- World Bank

Posted on April 22, 2024   |  

The World Bank has adjusted its forecast for the UAE's real GDP growth in 2024 to 3.9%, up from its earlier estimate of 3.7%.

For 2025, the projection for the UAE's economic growth has been raised to 4.1%, compared to the previous forecast of 3.8%.

Projections indicate an increase in the UAE's current account surplus to 8.4% in 2024 and 8.3% in 2025, with a fiscal surplus of 5.1% by the end of the current year and 4.8% by next year.

In the MENA region, growth is expected to be 2.7% in 2024 and 4.2% in 2025, indicating a return to pre-pandemic growth levels.

GCC economies, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, are forecasted to experience growth rates of 2.8% in 2024 and 4.7% in 2025.

The growth trajectory is attributed to increased oil output, the gradual removal of production cuts, and strong growth in the non-oil sector due to diversification efforts and reforms.

GDP per capita in the MENA region is projected to grow by 1.3% in 2024, with GCC economies driving this improvement with a projected growth rate of 1.0%, marking a significant improvement from the previous year's decline of 0.9%.