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Abu Dhabi economy to contract by about 7.5% this year - S&P - Metro US

Abu Dhabi economy to contract by about 7.5% this year – S&P

FILE PHOTO: General view of Business Bay area, after a curfew was imposed to prevent the spread of the coronavirus disease (COVID-19), in Dubai

DUBAI (Reuters) – Abu Dhabi’s real gross domestic product (GDP) is expected to contract by 7.5% 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% of GDP this year from 0.3% 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.

(Reporting by Davide Barbuscia; Editing by Mark Heinrich)

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