Around the world, soaring prices are emerging as a feature of the pandemic-era recovery, prompting several central banks to pivot to inflation-fighting. As manufacturing worldwide revives at different speeds, a mismatch between the goods that are being produced and those that customers want to buy is helping drive prices higher.
Mirroring the trend in other major economies around the world, inflation in Qatar has also inched up.
A recent survey stated that while prices are expected to remain elevated over the next few months, inflation should nevertheless moderate over the medium-term.
During its session, the Shura Council discussed ways to take adequate steps to curb the growing inflation. Speaker of the Shura Council H E Hassan bin Abdullah Al Ghanim highlighted the importance of discussing inflation at the local level, given that it witnessed a significant disparity compared to the countries of the region and needs to take practical steps to address it.
Al Ghanim pointed out that inflation and price increases necessitate the Council to discuss its justifications to develop positive and effective results and solutions, stressing that the wrong “consumption culture plays a major role in rising prices.” He further stated the need to spread awareness about consumption and reduce spending on luxury goods and services.
Meanwhile, the Deputy Speaker of the Shura Council H E Dr. Hamda bint Hassan Al Sulaiti also noted that the high inflation rate needs to be studied and consider the laws that were enacted by the state to regulate the market, prevent monopoly, protect the consumer, and regulate the work of commercial agents.
At the height of the pandemic, the government injected significant funds into the economy, and the country has maintained a stable outlook. Recovery is gaining pace due to a range of factors, including energy price recovery, ahead of analyst estimates.
Despite the rise, Qatar still leads the Arab world in the assessment index on the quality of life of Arab citizens, according to Kuwait-based think-tank CSRGulf. All the major indicators indicate that Qatar’s economy set to achieve remarkable performance in coming years.
The consensus forecasts by a number of international institutions, organizations, and banks showed that the Qatari economy will undergo recovery during 2021 and 2022, with a predicted average growth rate of about 2.8 percent and 3.7 percent, respectively.
The optimism by global organisations about Qatar demonstrates the strength and resilience of the local economy.
