Qatar’s GDP continues upward trajectory with 2.7% Q1 growth

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Doha, Qatar: With the economic activities unfolding in Qatar, the GDP of the country will remain steady and further its growth, say experts.

In a report accumulated by Cushman and Wakefield real estate firm, Johnny Archer, Market researcher, analyst, and Director of Consulting and Research at Cushman and Wakefield said that the upcoming events and activities in the country throughout this year and the upcoming years have witnessed the epitome of resilient global economy.

The first quarter of 2023 steadied at 2.7 percent GDP growth stated the report adding that enhancing business-related activities, investments and projects will bolster the country’s economy.

The report said: “Oxford Economics’ 2023 GDP forecast for Qatar remains unchanged at 2.7 percent, with economic activity sustaining this pace in 2024 as the government continues to support growth.”

In the meantime, foreign direct investment (FDI) is anticipated to increase in the coming years with potential tourism and business industries elevating in the country. The report highlighted that “The expected expansion of gas capacity and the pipeline of planned projects to draw FDI will underpin average growth of 3.2 percent in the non-oil sector this year and next.”

Numerous outlets in the country have shown a positive sign of growth as they continue to contribute to Qatar’s economy. It said “February’s PMI showed business activity growing for the first time since September 2022, led by demand in the wholesale and retail sectors. Firms are optimistic about near-term growth prospects, with the 12-month outlook soaring to a 41-month high.”

According to the reports, the momentum commenced in recent years with stupendous business activities, investments, and events like the FIFA World Cup furthering the growth of GDP to 4.1 percent last year, a significant rise from 1.5 percent in 2021. The report elucidates that weaker global growth and softer commodity prices are reducing exports and the budget revenue outlook. It said “Oxford Economics’ baseline sees spending growth easing, leading to a budget surplus of 10.3 percent of GDP this year. The government ran a surplus of QAR89bn (10.7 percent of GDP) in 2022, the strongest outcome since 2014.”

As per the given data “Expectations of sustained fiscal surpluses have triggered a positive credit outlook change from Fitch. Prices rose by 0.2 percent m/m in February, raising annual inflation to 4.4 percent, from 4.2 percent in January.”

“The recreation and culture category, 11 percent of the CPI basket, drove the increase, with the sub-index rising 5.2 percent m/m, offsetting declines in other categories,” the report said.

The analyst also stated in the data that “Oxford Economics expect annual inflation rates to be on a downtrend in the coming months and continue to forecast average inflation at 2.3 percent this year before stabilising around 2 percent in the medium term.”

“Qatar’s central bank tracked the US Fed in hiking 25bps in March. More tightening is likely in the coming months, which will weigh on lending and non-oil growth before rates are cut in 2024,” the report added.