How COVID-19 Affected Dubai’s Economy

Abstract

The pandemic had a significant negative impact on the global economy, it caused a recession which economists eventually called “The Coronavirus Rescission”. The global stock market went through the worst economic crisis after the one in 1987; therefore, the G-20 economies were cut down by 3.4% year on year. There is no clear forecast of the future economic effects this pandemic will have, and each country’s experience will be different. A steady flow of money, goods, services and the people to make them flow is essential for healthy economic growth, but this flow is severed at the current time because of the stay-at-home orders; therefore, many countries are going through a recession because of the coronavirus.

UAE’s central bank has reported that the county has seen a “significant decline in economic activity” due to the COVID-19 lockdown since it was extremely strict. This by far has been the steepest decline since 2009 which had caused the country to experience recession. Currently, Dubai faced a recession of 5.5% as it is in debt of extensive amounts, and the revenues are expected to drop comparably to the 2009 setback.