Standard & Poor's expects the UAE economy to grow by 2.7% within two years

Standard & Poor's expected in a recent report that the UAE economy will grow by 2.7% during the current and next year, but the growth rate will decline to 2% during 2023 and 2024.

A report issued by the agency said that the economy of the countries of the region began to achieve growth in the third quarter of 2020, but the sharp recovery was repelled by new waves of the Corona virus.

In the Arab world, the agency expected that the three largest Arab economies, namely Saudi Arabia, the UAE and Egypt, would achieve growth of more than 2% this year, while growth rates vary from next year to 2024.

Globally, the agency expects the economy to grow by 5.9% this year, 4.3% in 2022, 3.7% in 2023, and 3.3% in 2024.

The agency pointed out that the weak financial situation still weighs on North African countries, while the Gulf countries are witnessing high support, and stated that external imbalances are still a source of concern for Egypt.

The agency expected that some economic sectors would witness pressure, especially tourism and aviation, with a gradual recovery in some branches of the real estate sector.

The agency indicated that strong oil prices are the main catalyst for the Gulf region, explaining that the improvement in price trends is supportive of the business climate in most major sectors of oil, gas and commodities.

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