The new data showing Qatar’s trade surplus registering a quantum jump highlights the encouraging investment climate and the incentive atmosphere of the nation. The results also put spotlight on the increased trade relations and the public-private partnerships benefiting the economy.
The foreign merchandise trade balance in October 2018 showed a surplus of around QR 19bn, posting an increase of about QR10.7bn, or 129.1 percent, compared to the corresponding month in 2017. When compared on monthly basis, it has increased by nearly QR3.5bn, or 22.9 percent from September 2018. In previous months also, the data showed that Qatar has steadily registered an increase in the trade surplus.
The total exports of goods amounted to around QR28.8bn last month, showing an increase of 37.1 percent compared to October 2017, and increased by 7.3 percent compared to September 2018. It’s interesting to note, meanwhile, that the imports of goods in October 2018 amounted to around QR9.8bn, showing a decrease of 22.9 percent over October 2017. The main reason for this significant increase in total value of exports was mainly due to the higher exports of petroleum and other hydrocarbons products.
South Korea was the top destination of Qatar’s exports last month with around QR4.9bn, followed by Japan and India. And for imports, United State of America was the leading country of origin, followed by China and the United Kingdom.
This clearly shows that Qatar’s trade relationships around the world have continued to flourish, while new markets and opportunities are constantly being added. There were many doubts in the minds of several people about the future of the economic activities of Qatar when the unjust siege was clamped on Qatar around 17 months back, but after about a year and a half it’s become very clear that it doesn’t have any impact on the country.
The international trade and global investment measures represent main components of Qatar’s economic diversification policy and the country’s growth. Qatar has been able to strengthen its local economy, where the GDP grew in 2017 to about $222bn as compared to $218bn in the previous year, an annual growth rate of 1.6 percent at constant prices. The World Bank expects Qatar’s growth rate to be 2.8 percent in 2018, and expects country to achieve an average growth rate of around 3 percent in 2019 and 2020.
Qatar’s foreign trade witnessed a growth of 16 percent in the past year and exports rose by about 18 percent, which contributed to the increase in the surplus in the trade balance and it is expected to get stronger in the future.
This crisis, rather than a hurdle, has acted as a catalyst to make the Qatari economy more open to all countries in the world and succeeded in the development of trade.
