The non-oil sector grew 1.6 percent in the first quarter of the year, with the UAE’s gross domestic product hitting an annual rate of 2.2 percent driven by a robust government and private sector performance, according to the Central Bank's Quarterly Review.
The real gross domestic product is projected to grow 2 percent over the coming period, catalyzed by an expected growth of 2.7 percent and 1.8 percent in the oil and non-oil sectors respectively, with economic performance forecast to gain momentum on the back of rising general expenditure at the federal and local levels of every emirate as well as the increasing investments related directly to EXPO 2020 Dubai, according to the review.
Inflation declined in Q1-2019, with recruitments by the private sector recovering by 1.2 percent during the same period.
Private sector deposits continued to rally as well during the same period, with the CBUAE's general budget growing as a result of an increase in FDI inflows and the concomitant rise in liquidity.
