On Tuesday, the World Bank modified the growth forecast of the UAE, which showed that reform initiatives and fresh investments would show an upwards trend from 1.1 percent to 3.4 percent on higher output.
It is said that the UAE is predicted to see sustained growth of 3.4 percent over the next two years and will be the fastest-growing economy between 2024 and 2025.
Moreover, the Global Economic Prospects released an Asaa report on Tuesday: “The growth outlook for oil exporters in 2024 has improved after January, contemplating an assumed rebound in oil production, the expected impacts of reform initiatives investment drives in Saudi Arabia and the UAE”.
However, the International financial institution modified the country’s GDP growth downwards for 2023 by 1.3 percent to 2.8 percent due to constrained oil production and tightening economic conditions.
Besides, for the GCC region, the World Bank scored the projection of 2023 by 1.3 percent to 2.4 percent but modified the projection of 2024 by 0.8 percent to 3.2 percent.
For the Middle East and North Africa (Mena) region, it slashed the growth forecast by 1.3 percent to 2.2 percent and trekked the estimates for 2024 by 0.6 percent to 3.3 percent.
Global Projections:
The World Bank projected that global growth has slowed sharply from 3.1 percent in 2022 to 2.1 percent in 2023, and the risk of financial stress in emerging markets and developing economies is strengthening amidst elevated global interest rates.
Moreover, in the USA, growth is predicted to weaken through 2023 and early 2024 because of the lagged efforts of the sharp rise in policy rates over the last year and a half. However, activity is predicted to pick up towards the end of next year as inflation eases and the effects of monetary policy tightening fade.
The World Bank stated that growth in the Pacific and East Asia is projected to strengthen by 5.5 percent in 2022, as a recovery in China offsets slowing activity in most other regional economies.
In 2024 and 2025, growth in the region is predicted to cut down to 4.6 percent and 4.5 percent, respectively, as growth in China slows alongside broadly stable growth in the rest of the area.
According to the Global Economic Prospects report, Europe and Central Asia (ECA) growth is projected to decrease slightly in 2023 to 1.4 percent. However, the outlook remains particularly uncertain due to the invasion of Russia in Ukraine and its repercussions.
The report stated that, in South Asia, growth is expected to slow to 5.9 percent: in 2023 and more to 5.1 percent in 2024. Growth in India is predicted to slow to 6.3 percent in the 2023-24 fiscal year, and a 0.3 percent point downward revision from January due to private consumption being constrained by high inflation and rising borrowing costs, while government consumption is impacted by fiscal consolidation. Growth is projected to increase barely through 2025-26 as inflation moves back towards the midpoint of the tolerance range and reforms pay off. Moreover, India will remain the fastest-growing economy of the most significant emerging and developing economies.
