DOHA: Qatar, the world’s richest country, might see its per capita income decline as its population is expected to grow faster than its economy, says the country’s planning secretariat.
The influx of foreign workforce is likely to rise due to the mega development projects being launched for the 2022 FIFA event, while economic growth is expected to be lower.
A heavier influx of foreign workforce due to the construction boom indicates increased expenditure which essentially means there will be growth.
But it would also mean that due to rising population the per capita income of the country would decline from the present peak, said the planning secretariat.
According to the General Secretariat for Development Planning (GSDP), real GDP growth (adjusted against inflation) is expected to be higher at 5.3 percent in 2013.
The earlier forecast was 4.8 percent and the new forecast is based on expected changes in oil and gas output.
The pace of economic growth will continue and the rate of growth will be 4.5 percent next year, while in 2012 GDP (gross domestic product) rose 6.2 percent.
Pipeline gas production will rise this year and unscheduled shutdowns are unlikely to be repeated, the secretariat said in a report.
In 2014, upstream oil and gas is expected to contract as output from maturing oil fields taper of and gas production hits installed capacity limits.
The population is expected to continue to rise in 2014 as well. The bulk of the influx is expected to be of workers entering low-productivity activity areas such as construction.
“Although the level of real GDP (adjusted against inflation) is likely to climb, so is Qatar’s resident population. Burgeoning infrastructure development activity will create the demand for many more workers.”
The government’s fiscal surplus is expected to drop to 4.7 percent of GDP in 2014 from an upwardly revised 8.1 percent this year, said the GSDP.
Inflation is expected to be 3.6 percent in both 2013 and 2014, up from 1.8 percent last year, the GSDP has predicted.
The Peninsula
