DOHA: Qatar is expected to achieve an incredible 33.8 percent economic growth by year-end, which would see the economy expand to a little beyond QR618bn.
Keeping the high gross domestic product (GDP) growth this year in mind, the government and the Qatar Central Bank (QCB) are keen to rein in inflation by issuing bonds to absorb excess liquidity.
Famed Qatari columnist, Yusuf Al Kahloot, wrote recently that in the first half (H1) of this year the average oil price in the global markets was $106 per barrel.
Qatar on average exported 800,000 barrels per day of crude in this period and the production of liquefied natural gas (LNG) is almost reaching the maximum (77 million tonnes per annum).
Oil rates in the international markets are expected to remain above the $100 per barrel level in the remaining half (H2) of this year, Al Khaloot said in his column.
It is because the world demand for crude would remain high in H2, 2011 due to the Libyan crisis as oil from Tripoli is not coming on the market, leading a shortfall in supplies.
As a result of high oil prices and accompanying revenues from crude and gas exports, Qatar's vibrant oil and gas sector is likely to witness a growth of an incredible 60 percent in 2011 over the previous year.
This growth would provide stimulus to the overall economic growth in the country, said the columnist.
As for non-oil sector which mainly comprises manufacturing, banking and financial services and power and water, among other things, it is expected to grow by seven percent this year as compared to 2010.
As a result of the growth in these two sectors, Qatar's overall GDP growth is expected to be 33.8 percent in 2011 and the size of the economy (GDP) will be reaching QR618bn.
According to Al Kahloot, a recent report issued by the International Monetary Fund (IMF) put the GDP of Qatar at an impressive QR584bn.
Higher economic growth leads to rising prices but the government and the QCB, said Al Kahloot, are keen to absorb excess liquidity by issuing state bonds and reduce interest rates.
Such steps would make sure that prices don't escalate and this would be true of property rates as well. They wouldn't escalate, said the columnist.
© The Peninsula 2011
