Latest reports and reviews by regional and international organizations, including International Monetary Fund (IMF) and Institute of International Finance (IIF), have proved that Qatari economy has shown its resilience to the unjust economic blockade imposed by some of its neighbours.
The strong will of country’s people and leadership supported by the robust economic fundamentals failed their intention to derail Qatar’s exemplary economic progress and unparallel achievements made almost in all sectors of the country.
The economy has successfully weathered the Arab spat and the impact of the economic blockade as a result its strong macroeconomic fundamentals and huge foreign assets and sovereign wealth funds.
Despite the siege, the nominal gross domestic product (GDP) of Qatar is forecast to register a robust growth in the 2018, noted an economic update by the Institute of International Finance (IIF).
Qatar’s nominal GDP is forecast to touch $191bn (over QR695bn) in 2018 against $166bn (QR604.48bn) in 2017. The real GDP is expected to grow by 2 percent in 2018 against 1.9 percent in the previous year, according to the latest review by IIF, the Washington-based global association of financial institutions and trade groups.
The IIF’s report has also forecast a sharp rise in Qatar’s current account surplus, and a significant fall in its public debt (as percentage of GDP) in 2018. Qatar’s current account surplus (the difference between exports and imports of merchandise), is expected to see a double-digit growth of 10.3 percent of GDP in 2018 against 3.9 percent in 2017, which is evident about the robust growth in the country’s international trade. And Qatar’s public debt is forecast to decline to 72.8 percent of GDP in 2018 from 86.8 percent last year.
The GDP- public debt ratio is forecast to get further strengthened in 2019 at 71.8 percent (of GDP), to be one of the lowest in the world.
According to the IIF report, the Qatar’s economy continues to adjust to the effects of sanctions by some Arab countries. “Given the large public foreign assets, Qatar is (in) a strong position to meet domestic funding requirements.”
The IIF report also noted that economic growth is set to get accelerated driven by increase in government spending and energy production.
Qatar’s fiscal balance (surplus) is forecast to reach 3.4 percent of the GDP in 2018, which is also a remarkable development as an indicator of the performance of the Qatari economy. Qatar will see a fiscal surplus after registering a fiscal deficit of 4.7 percent and 2.2 percent of GDP in 2016 and 2017, respectively.
