The pace of economic recovery in Qatar’s economic recovery continues to gain momentum. The signs of economic recovery and growth in Qatar’s economy are now clearly visible.
Recently released data about Purchasing Managers’ Index has showed record expansions in both activity and new business in October.
The latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre (QFC) has signalled a successive record improvement in operating conditions in the non-energy economy at the start of the fourth quarter. Output and new work both increased at the fastest rates since the survey began in April 2017, with activity growth especially marked in financial services and construction.
The PMI increased to a new record high for the second month running at 62.2 in October, from 60.6 in September. This indicated the strongest overall improvement in non-energy sector business conditions since the survey began four-and-a-half years ago. The headline figure has now risen for five consecutive months, also a survey record.
Since operating conditions began to improve again in July 2020, as the economy emerged from lockdown, the PMI has trended at 55.1, compared with a long-run average of 50.7 since April 2017.
The recovery in Qatar’s economy is consistent and is unmatched in the region. The long term growth prospects of Qatar’s economy are bright and the economy is expected to grow at a faster pace over the next decade.
Several other indicators have also validated the strong economic recovery in Qatar’s economy. One such indicator is rising exports.
Various sectors of the economy, including industrial production, hospitality, automobile, real estate and maritime, are showing signs of strong rebound in activity.
According to the Qatar Chamber’s monthly economic newsletter for August, the total value of private sector exports stood at QR12.3bn during the first half of this year, reflecting a 56 percent growth compared to QR7.9bn during the same period last year.
In the second quarter of this year, the total exports including exports of domestic goods and re-exports amounted to QR71.1bn, showing an increase of QR33.3bn or 88.1 percent compared to QR37.8bn during Q2, 2020; and an increase of nearly QR7.2bn or 11.2 percent when compared to Q1, 2021.
Qatar’s Industrial Production Index (IPI) for May 2021 stood at 105.8 points, showing an increase of 6 percent compared to the previous month (April 2021). When compared on year-on-year basis, the IPI index has increased by 1.7 percent compared to the corresponding month in 2020, according to the data released by the Planning and Statistics Authority.
