#UAE economy to grow 2.1% this year and 4.2% next - central bank | Reuters

UAE economy to grow 2.1% this year and 4.2% next - central bank | Reuters

The United Arab Emirates' economy will grow 2.1% this year and 4.2% in 2022, the central bank said on Wednesday, as the Gulf state rebounds from the coronavirus downturn.

"Economic activity in the UAE continued its recovery in the second quarter, with growth reaching almost pre-COVID-19 levels," the central bank said in its quarterly economic review.

It forecast real non-hydrocarbon growth - adjusted for inflation and excluding the oil sector - of 3.8% this year and 3.9% next year, though it cautioned that projections were susceptible to lingering uncertainties amid the pandemic.

The UAE economy benefited from a recovery in global travel and a pick up in domestic and external demand in the second quarter, the central bank said. It has also had a successful vaccination drive.