The latest market survey from global information provider IHS Markit suggests that Dubai’s Economy has taken small but significant steps towards a lengthy journey to recovery from the COVID-19 induced slowdown
The Emirate has recovered to its highest numbers since the coronavirus pandemic pulled the economy into a downward spiral. Weak consumer demand is hindering the economy in making bigger strides towards recovery.
The IHS Markit Dubai Purchasing Managers’ Index grew to 46 in May from a record low 41.7 in April. Relaxations of lockdown measures have significantly contributed towards a smaller decline in output and new orders as well as a moderate uptick in the unemployment rate in three months.
“The latest survey data suggested economic conditions remain a long way from recovery in May. Activity is expected to improve in the year ahead, but it remains to be seen how long it will take for the Dubai economy to rebound following COVID-19.”
David Owen, an economist – IHS Markit.
The UAE, unlike other nations across the Middle East, has not seen signs of a possible resurgence of infections recently. But even as more firms reopen for business, the emirate would require a longer period to turn around an economy that his still hurting from disturbances to trade and travel caused by the pandemic.
“Businesses highlighted that, despite restrictions on economic activity being partly lifted, weak consumer demand and a slow market response stopped them from making headway into covering their losses,” Mr. Owen said.