ABU DHABI / WAM
The non-oil sector grew 1.6 percent in Q1-2019 on year, with economic growth hitting an annual growth rate of 2.2 percent driven by a robust government and private sector performance, according to Central Bank of UAE’s Quarterly Review.
The real gross domestic product is projected to grow by 2 percent over the coming period, catalysed by an expected growth of 2.7 percent and 1.8 percent at the oil and non-oil sectors respectively, with economic performance forecast to gain momentum on the back of rising general expenditure at the federal and local levels of every emirate as well as the increasing investments related directly to Expo 2020 Dubai, according to the review.
Inflation declined in Q1-2019, with recruitments by the private sector recovering by 1.2 percent during the same period.
Private sector deposits continued to rally as well during the same period, with the CBUAE’s general budget growing as a result of an increase in FDI inflows and the concomitant rise in liquidity.