The Department of Economic Development or DED of Dubai said on Tuesday that it expects the emirate to record a growth of 3.1 percent this year.
This came as DED was announcing its latest economic outlook for the emirate, which took into account the hosting of Expo 2020 Dubai.
According to the DED, Dubai’s economy would grow by 3.4 percent in 2022, “spurred by the hosting of Expo 2020”.
It explained that Dubai’s actual output in 2020 was “below its existing production capacity,” similar to elsewhere in the world.
Steps taken to ensure the halt of the spread of Covid-19, like lockdowns and confinement, dampened both supply and demand.
This led to a significant decline in economic activity, including in Dubai, despite the support provided by the government.
The DED said Dubai’s economy had seen a growth of 1 percent during Q1 2021, compared to Q4 2020. This, it said, signaled that the emirate’s economy was on the path to recovery.
This, despite Dubai’s economy having contracted by 3.7 percent in Q1 2021 as compared to Q1 2020, which was relatively free of Covid-19; it would be declared a pandemic only on March 11.