ABU DHABI — The Central Bank of the UAE projects real GDP to recover to positive growth of 2.5 percent in 2021, with non-oil GDP growing by 3.6 percent and oil GDP remaining flat based on the OPEC+ production schedule and announcements.

In a report issued on Thursday, the apex bank said real non-oil GDP growth is expected to be driven by increasing fiscal spending, pick up in credit and employment, relative stabilization of the real estate market, boosted by a recovery in confidence and the Dubai EXPO in 2021.

In 2022, a full recovery is expected, with overall real GDP increasing by 3.5 percent, while the non-oil real GDP rising by 3.9 percent, added the report.

"This will be the result of the continued fiscal spending growth, healthy banks’ credit growth, strong improvement in employment, and recovered business sentiment, with part of Dubai EXPO 2021 taking place in 2022 as well," it explained. — WAM