UAE: GDP to contract by 4.6% in 2020 – Standard Chartered

Economists at Standard Chartered Bank expect GDP to contract by 4.6% y/y in 2020 (1.4% growth prior), mainly on OPEC++ oil output cuts. USD/AED is sitting at 3.6731.

Key quotes

“We expect GDP to contract by 4.6% y/y in 2020 (1.4% growth prior). The downward revision mainly reflects a revival of the OPEC++ agreement.”

“We think non-oil economic activity could contract by 4.7% y/y in 2020.”

“The Central Bank of the UAE has announced up to USD 70bn (c.17% of GDP) in liquidity support to the banking sector.” 

“The medium-term viability of private businesses in a range of sectors depends on how quickly and sustainably demand for goods and services recovers. This makes preserving employment a key priority.”