Dubai Q2 GDP up 4.7%, deficit dips

Dubai’s economy appears to be maintaining its momentum fuelled by strong performance in several non-oil sectors, with its real GDP growing by 4.7 per cent in the second quarter of 2013, according to official data.

Growth was stoked by large increases in the real estate, trade, transport and manufacturing sectors, which have remained the driving force in the government endeavors to diversify its economy away from volatile oil sales.

The figures by the Dubai Economic Council showed higher revenue projections depressed the emirate’s fiscal deficit to Dh1.5 billion in 2013 from Dh1.78 billion in 2012. The report showed pubic revenues were expected to rise by 7.2 per cent to Dh32.6 billion from Dh30.4 billion while spending was forecast to have grown by 5.8 per cent to Dh34.1 billion from Dh32.3 billion in the same period.

Inflation remained as low as 0.96 per cent in the second quarter of 2013 while domestic liquidity grew by about 1.6 per cent.

The report showed Dubai’s trade soared by nearly 16 per cent to a record high of around Dh679 billion in the first half of 2013 from Dh584 billion in the first half of 2012.

Exports and re-exports also swelled by 16 per cent to Dh272 billion while imports grew by 16.3 per cent to Dh406 billion from Dh349 billion.