Abu Dhabi’s economy to contract by 7.5 pct in 2020 due to coronavirus, oil: S&P

Abu Dhabi’s economy to contract by 7.5 pct in 2020 due to coronavirus, oil: S&P

Abu Dhabi’s real gross domestic product (GDP) is expected to contract by 7.5 percent this year because of lower oil production and the impact of the new coronavirus outbreak, S&P Global Ratings said.

The fiscal deficit of the oil-rich emirate will rise to about 12 percent of GDP this year from 0.3 percent in 2019, the ratings agency estimated.

It added it expects smaller emirates in the United Arab Emirates (UAE) to receive “extraordinary financial support” from the UAE, with the backing of Abu Dhabi, in the event of financial distress.

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