Abu Dhabi economy to contract by about 7.5pc this year: S&P

DUBAI: Abu Dhabi’s real gross domestic product (GDP) is expected to contract by 7.5pc 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 12pc of GDP this year from 0.3pc 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.