World Bank Predicts UAE Economy to Shrink 4.5%; Overall GCC Market down 4.1% in 2020

June 09, 2020

The World Bank has predicted the economy of the United Arab Emirates (UAE) to contract by 4.5% in 2020, driven by the impacts of the COVID-19 pandemic as well as due to the shutdowns imposed to curb the spread of the pandemic. Nevertheless, the World Bank forecasts that the economy will rebound in 2021 and grow by 1.4% as oil and non-oil sectors improve along with the ease of restrictions while normalcy returns to the global economy.

In its report titled ‘Global Economic Prospects 2020’, issued on the 8th of June 2020, the World Bank expects that the GCC economies will contract by 4.1% in 2020 and bounce back in 2021 with a growth of 2.2% as recovery begins in the post-COVID-19 era.