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Qatar’s economy set to expand on stronger demand: Report

Qatar’s economy set to expand on stronger demand: Report

Satyendra Pathak
Doha
Qatar’s economy is set to expand this year on stronger domestic and foreign demand, FocusEconomics has said in its latest report.
“Investment in the energy sector and easing tensions with Gulf neighbours should also provide support. In March, Qatar Petroleum signed a ten-year supply deal with a Chinese firm. This came after it inked supply deals with Bangladesh and Pakistan, amid plans to expand LNG output by over 40 percent in the next several years,” the report said.
FocusEconomics panellists see a 2.8 percent rise in Qatar’s GDP in 2021, which is unchanged from last month’s forecast, before the growth of 3.5 percent in 2022.
While Qatar’s energy sector began the year on a robust footing with oil and gas extraction growing year-on-year in January, the country’s private sector PMI readings through March suggested resilient activity nonetheless.
While consumer prices in Qatar fell 1.4 percent in annual terms in February following January’s 1.3 percent decline, the report said, prices are seen rising later this year on higher food and energy costs, recovering activity and a supportive base effect.
“The possible implementation of VAT is an upside risk. Our panellists see consumer prices rising 1 percent in 2021, which is up 0.2 percentage points from last month’s forecast. In 2022, our panel sees inflation averaging 2.2 percent,” it said.
The report indicated that the GDP per capita in Qatar will also increase from $59,772 in 2021 to $74,126 in 2025.
According to the annual data released as part of the report, the overnight lending rate in the country would continue to rise from the current level of 2.5 percent and reach up 4.07 percent by 2024.
The Qatari riyal will continue to be pegged at $3.64 in the years to come, it said.
The country would witness a sustained increase in both imports and exports in the coming years. While the merchandise exports from the country is expected to rise from $62.9 billion in 2021 to $82.1 billion in 2025, the report said, merchandise imports would increase from $29.3 billion in 2021 to $36.3 billion in 2024.
FocusEconomics, a leading provider of economic analysis, has also forecast that Qatar’s trade balance would rise from $26.2 billion in 2020 to $36.8 billion in 2025. The report has projected that Qatar’s current account balance will account for 3.2 percent of the total GDP in 2021 and rise up to 7.5 percent in 2025.
Qatar’s current account balance will turn positive in 2021 with a surplus of $5.4 billion, the report said adding it will continue to rise onwards and reach up to $15.5 billion in 2025.

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