Qatar’s non-oil sector strength to counterbalance oil sector weakness in 2022; Report

By Shilpa Annie Joseph, Desk Reporter
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Oxford Economics, one of the world’s foremost independent global advisory firms, has stated that the strength in Qatar’s non-oil sector will counterbalance the country’s oil sector weakness in 2022.

Qatar’s gross domestic product (GDP) grew at a 2.5 percent rate in the first quarter of the year, up from 2.2 percent in the fourth quarter of 2021, the company said.

According to the statement, “Growth in non-oil sectors such as construction, transportation, and real estate led the expansion but was offset by mining and manufacturing declines.”

The latest Purchasing Managers Index (PMI) data continue to indicate an improvement in the non-oil sector and the non-oil sector strength will offset oil sector weakness and boost overall growth this year.

“We see Qatar’s GDP growing at a 3.6 percent pace in 2022 and the country’s GDP will grow at 3.5 percent in 2023,” the advisory firm noted.

Oxford Economics has predicted that “Qatar’s current account surplus (as a percentage of its GDP) will be 16.7 this year and 14.3 in 2023. The country’s fiscal balance (as a percentage of its GDP) will be 9.1 this year and 8.9 in 2023.”

According to Oxford Economics, Qatar’s inflation will hit 3.9 percent this year and 1.9 percent in 2023.

Furthermore, Oxford Economics stated that the Middle East and North Africa (MENA) region possesses the financial and natural resources to transition towards low-carbon energy sources.

The report noted that “MENA has great potential for solar and wind energy, which can be harnessed with improvements in storage technology. The region also has potential for hydrogen and carbon capture, storage, and use (CCUS).”

Related: Dubai property market sees high demand from Chinese investors amid recovery


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