Qatar’s Ministry of Finance (MoF) has revealed that the country’s economy is predicted to recover from the COVID-19 pandemic in 2021, with real GDP expected to expand by 2.2 percent.
The advancement of the immunization program, the gradual relaxation of restrictions, and the quick recovery in oil demand are expected to set the economy on a growth trajectory in the second half of 2021, according to the ministry’s official budget statement for the second quarter of 2021.
The Ministry of Finance has released this report to offer detailed fiscal data for the first quarter of 2021, including revenues, expenditures, debt dynamics, and other important fiscal and economic developments. Qatar’s overall revenue during the second quarter of 2021 was $13 billion (QR 50.1 billion), up 10.7 percent from the same period the previous year.
According to the reports, “The economy of Qatar contracted in 2020 as the recorded real GDP was -3.7 percent. The contraction was primarily driven by the COVID-19 pandemic outbreak and weak oil demand during 2020.”
“The growth in total revenue was primarily supported by the increase in non-oil revenue attributed to the collection of corporate income tax in April 2021. Total oil and gas revenue amounted to $8 billion (QR 30.7 billion) that represents an increase of 17.1 percent compared to the same period last year supported by higher oil prices,” the report noted.
Furthermore, the overall public debt level fell by 2.9 percent over time, the ministry said adding that the decline was a result of delivering on the scheduled debt redemption plan for both external and domestic debt.
The ministry commented that current expenditure grew by 3.9 percent compared to the previous quarter, owing principally to higher aggregated interest payments on the domestic and overseas debt in the second quarter. The Ministry of Finance will be publishing similar budget reports periodically within 30 working days of the end of each quarter.