Qatar’s inflation-adjusted GDP growth will accelerate to 7.8 per cent in 2016 from 6.8 per cent this year on increases in capital spending and other non-oil factors, the September edition of Qatar National Bank’s Qatar Economic Insight says.
“Qatar’s economy has started a new diversification phase as large investment spending in the non-hydrocarbon sector accelerated growth to 6.5 per cent in 2013 (6.1 per cent in 2012) while growth in the hydrocarbon sector slowed,” The report said.
Other highlights include:
* Consumer price inflation slowed to an average of 2.8 per cent in H1 2014) as rising rents were offset by lower global food prices
* The current account recorded a surplus equivalent to 30.9 per cent of GDP in 2013
* The government has ramped up budgeted capital spending, driving overall investment and economic growth, while the fiscal surplus increased to 15.6 per cent of GDP in the fiscal year that ended on 31 March
* Overall inflation is projected to increase moderately to 3.4 per cent in 2014 and 3.5 per cent in 2015
* The current account surplus is expected to fall to 21.6 per cent of GDP by 2016, owing to moderately lower oil prices and strong import growth related to infrastructure spending
* Lower hydrocarbon revenue and rising capital spending could cut the fiscal surplus to 8.5 per cent of GDP in 2014/15 and to 5.3 per cent of GDP in 2016/17
* Bank lending is expected to rise by an average of 10.7 per cent in 2014-16 due to the expanding population and steady deposit.