Qatar’s Purchasing Managers’ Index (PMI) increased to 52 points in July, rising from 51.8 points in the previous month. The record increase in job creation and the remarkable growth of new applications, as well as the improvement in the confidence index to its highest level since the start of the study, have all contributed to the results of July.
The accelerated growth in the business activity of the non-hydrocarbon private sector in July reflects the strength of local economic conditions.
The PMI of the State of Qatar is issued by Qatar Financial Center (QFC) and is concerned with the activity of private non-oil private sector companies in the country.
Meanwhile, the value of Qatar’s non-oil exports in the first half of 2018 reached QR11.5bn compared to the first half of 2017 which amounted to QR 8.6bn, registering an increase of 33.7 percent, according to the monthly report of Qatar Chamber on the foreign trade of the private sector. The total value of non-oil exports for last June reached QR1.66bn compared to QR794m in June 2017, recording an increase of 108 percent.
The significance of PMI is that it’s the most closely watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends.
These data will certainly help Qatar attract more investments and businesses into the country. The readings of the main PMI above 50 points indicate an improvement in the economic activity of companies than in the previous month, while readings below 50 points indicate a decline.
The increase in business inflows was due to the correlation between the strength of demand, the improvement in economic conditions and the promotion activity, which increased in July. Meanwhile, the level of trade confidence and employment rate reached record high in the same month.
The large difference in the value of exports is due to the repercussions that occurred in the first week of June 2017, which marked the beginning of the unjust siege on Qatar, where exports stopped to the siege countries and there was a decline in the total volume of exports. But was quickly compensated for by alternative export destinations that the Qatari private sector has successfully launched in many countries around the world.
All these data show the resilience of the Qatar economy. Despite the ongoing unjust siege imposed on Qatar by some countries, Qatar has weathered all challenges. The country has not only managed the initial hiccups, but has also leapfrogged its place in the global economic front.
