Macro - Country Economic Forecasts - United Arab Emirates

Macro - Country Economic Forecasts - United Arab Emirates

The latest Dubai airport data highlight the rebound in travel and tourism activity in the UAE. While Dubai airport traffic was still below pre-Covid levels, it hit its highest level since 2019 Q4 and is expected to exceed pre-Covid levels by year-end 2023. The UAE's PMI eased to 54.1 in January from 54.2 in December as slower global growth weighed on exports. Still, with a strong expansion of non-oil business activity, signalled by the rise in output and new orders, businesses remain optimistic. We expect non-oil GDP growth to expand about 3.9% in 2023 after growing 6.6% in 2022 and for overall GDP to grow 3.2% this year.