Coronavirus pandemic pressed pause on the global economy’s progress. The UAE’s open economy hinged on tourism and oil encountered attacks from many directions. As the economy recuperates, its priorities over the next few years are expected to change.
A year into the fight between disease and development, the ramifications of the event are apparent. The Federal Competitiveness and Statistics Centre said the UAE’s economy contracted by 6.1 per cent in 2020. As the world’s air travel hub and an international centre of trade and business, the global restrictions on movement stunted the economy.
A look back
The Arab world’s second biggest economy witnessed the first contraction of its GDP since the financial crisis in 2009 as the pandemic led to a significant slump in rent, trade, foreign investment and energy prices.
The oil reliant Gulf region confronted a double whammy shock with a dip in both price and demand of oil. Prices collapsed with the shock of the virus on economies at large while demand shrank as global energy demand dissipated.
The International Monetary Fund (IMF) said, recovery from the pandemic relies on vaccine rollouts, exposure to tourism and government policy enhancements, in its latest report.
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