The Corona virus pandemic suddenly took over the world in 2020 and hit the global economy badly. Two years down the line, with the new variants of the virus still holding sway, nations across the world are fighting the battles of inflation and making sincere attempts to bounce back. Some regions like The United Arab Emirates are facing a surge in economy activity, helping them to bounce back positive since the advent of the Corona virus.
Kavan Choksi – an overview of the current economic status in the UAE
The economy of the UAE is expected to increase by over 5% this year, as per UBS Global Wealth Management reports released by credible authorities in the region. In 2021, the economy of The United Arab Emirates increased by 3.8% because of incentives launched by the government. Other plans and the vaccination of the residents and locals in the area and region also contributed to this economic growth in the area. The non-oil sector also played a significant role in helping the UAE economy to bounce back and recover too.
According to business and finance expert Kavan Choksi, the non-oil sector had robust growth and a good start at the beginning of 2022. All of the indexes in the UAE, with the inclusion of the Business Confidence Index (BCI) and the Purchasing Managers Index (PMI), showed that the non-oil sector has been performing well since January.
In the first quarter of this new, the GDP of the UAE increased by 8.2 %, with the GDP related to oil increasing by 13% in tune with the OPEC and all relevant agreements.
A surge in employment and wages in the region
Thanks to the growth of actual income levels in the region due to the increasing employment rates and wages, local demand was supported. The above helped to make the economy stronger in industries that dealt with wholesale retail and real estate.
Growth has been witnessed in other sectors as well
Sectors specializing in hospitality, tourism, and transport bounced back rapidly in the last few months. There has been an influx of tourists in the UAE, leading to a surge in hotel bookings. Credible sources in the region state that the fast economic recovery from the Corona virus pandemic and the primary contribution from its non-oil industries have highlighted the unique diversification currently present in the UAE.
Growth is taking place in the GCC nation’s economies
According to experts, the economies of The Gulf Cooperation Council will increase by 6.4% this year and 3.4% in 2023. The economy in the world witnessed a downward trend because of the increasing concern of a recession. The GDP of the USA reduced by 0.9% in the second quarter this year, while problems of an impending slowdown in Europe were rising.
According to business and finance expert Kavan Choksi, inflation still remains a crucial worry for economic policymakers across the globe. The present dynamics of inflation do not leave sufficient room for less limited policies of the Central Banks of the countries. There is great anticipation that the Federal Reserve in the USA will keep increasing its rates of interest with the target to reach one hundred basis points by the close of 2022.