ABU DHABI — The gross domestic product (GDP) of Abu Dhabi is forecast to rise to about Dh850 billion and Dh890 billion at current prices in 2017 and 2018, respectively.
The forecast was made by Standard & Poor’s which attributed the growth to the momentum witnessed by the oil and non-oil sectors since the start of the year.
The credit ratings agency is also expecting the emirate’s per capital GDP to amount to Dh277,000 this year at current prices, which is the highest across the Gulf Cooperation Council (GCC) states.
Inflation on the other hand is anticipated to stand at 2.5 percent during 2017 and projected to go down to 2 percent in 2018.
The Statistics Centre- Abu Dhabi (SCAD) earlier said it expects the emirate’s economy to grow by 17.7 percent during the first quarter of 2017.
Economic analysts surveyed by WAM attributed the positive economic performance of the emirate to the considerable growth in non-oil activities, which now account for more than two thirds of the emirate’s GDP, in addition to the noticeable improvement in global oil prices.
The oil and gas sector’s contribution to the emirate’s GDP declined to 27.5 percent in 2016 while the non-oil sector contributed a 50-year high of 72.5 percent, which translates the successful economic diversification measures taken by the government.
According to SCAD figures, the information and telecommunications sectors contributed 6.9 percent to the emirate’s GDP, followed by the transportation and storage sectors with 5.8 percent and the process industries with 3.6 percent.