Reports: Dubai's Economy has Almost Reached its Pre-Pandemic Size
- Publish date: Tuesday، 13 June 2023
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Dubai has made remarkable progress in its recovery from the pandemic, with the city almost returning to its pre-pandemic size. Over the past two and a half years, Dubai has experienced a strong bounce back fueled by the growth and resilience of its key strategic sectors.
Fitch Solutions, which provides insights, data, and analytics, stated that the emirate’s economy has gained back around 98.0 percent of its pre-Covid-19 size.
However, it is expected that Dubai foresees a slowdown in its real GDP growth. After an estimated 4.2% growth in 2022, the city expects a deceleration to 3.4% in 2023. This showcase is influenced by lower oil prices and an increase in borrowing costs.
Despite the slowdown this year, the growth is still above the 2015-19 average of 3.1 percent, it said.
“We believe that the ongoing rebound in the emirate’s key sectors, which have yet to fully recover from the pandemic, will keep growth above the historical trend in 2023. We expect activity in the wholesale and retail sector (which account for 26 percent of total GDP) will pick up helped by a growing population and the sustained influx of tourists, especially those with elevated purchasing power,” it said.