Stronger Non-Oil Growth Drives UAE GDP To 1.5 PercentSource: www.export-egypt.com 3/21/2018, Location: Middle East |
|
|
|
|
|
The UAE’s economy expanded by 1.5% in 2017, driven by a 2.9% growth in the non-oil sector, according to the UAE Central Bank annual report released .
The non-hydrocarbon sector’s resiliency was supported by employment expansion, higher government spending and improved growth in the main UAE’s trading partners. However, the Real Oil-GDP declined by 1.5 on account of the OPEC-oil production cut agreement to which the UAE has committed. Annual inflation reached 1.8% in 2017, the same rate as in 2016, primarily driven by the rebound of Tradables prices: Tobacco and Beverages prices jumped by 18.3% on account of the excise tax implemented in October and Transportation Price inflation (5.4%). Employment expanded by 2.6% y-o-y in the first nine months of 2017. Fiscal expansion continued in the first nine months of 2017, increasing government spending by 23% y-o-y. After a dramatic decline of oil prices in 2014 and the subsequent declining trend where the Brent price hit less than $30 for the first time since February 2004, oil prices started their recovery in 2017. Oil prices declined by 47% in 2015, followed by a trough of 17% in 2016 which weighed heavily on the UAE’s hydrocarbon revenues and resulted in adverse shock to the UAE’s terms of Trade. Effective January 2107, following an OPEC agreement that stipulates a coordinated oil-production-cut among its members and other Non-OPEC countries, the Brent price climbed by 24% in 2017 to end-up the year around $70 per barrel. The oil production-cut was clearly reflected in the Real Oil GDP growth in 2017. According to the estimation of the CBUAE, Real Oil GDP shrank by 1.5% in 2017 against a previous expansion by 3.8% in 2016. The improvement of oil prices has supported the recovery of the UAE’s economy, as evident by an improved sentiment that was transmitted to the improved growth of non-oil activity. In addition, the diversification of the UAE’s economy has been a strong pillar to weather the adverse implications of continued fluctuations of the oil price. Indeed, the non-oil sector showed a remarkable resiliency, relative to comparators; it has sustained a stable growth pattern since the decline of the oil price in 2014. |
|
|
Financials and Investment News in United Arab Emirates >> |
 |
|||||
|
Egypt >> 11/21/2024 - An International Monetary Fund (IMF) mission led by Ivanna Vladkova Hollar wrapped up in-person discussions with Egyptian authorities in Cairo regardi...
|
Egypt >> 11/21/2024 - The Engineering Export Council of Egypt (EEC) revealed that engineering industry exports increased by 25.6 percent from January to September, reaching...
|
|
Egypt >> 11/20/2024 - Prime Minister Dr. Mostafa Madbouly held a meeting this morning at the government headquarters in the New Administrative Capital with Mr. Chang Won Sa...
|
Egypt >> 11/20/2024 - Egyptian Prime Minister Moustafa Madbouly, with Mahmoud Esmat, Minister of Electricity and Renewable Energy Minister, and Sultan Al Jaber, UAE Ministe...
|
|
Egypt >> 11/20/2024 - Egypt and Australia have seen a significant surge in their bilateral trade relationship, with the trade volume increasing from $270 million in 2015 to...
|
Egypt >> 11/20/2024 - Egyptian Prime Minister Moustafa Madbouli chaired the Cabinet’s weekly meeting in the New Administrative Capital.
The Cabinet is set to add... |
| United Arab Emirates Oil & Gas 1 >> 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | |
