Qatar  | عربي

 
Doha, 15 September 2013 - QNB Group published its Qatar Economics Insight 2013 report, which highlights Qatar’s strong growth outlook as infrastructure spending increased considerably to meet the requirements for the 2022 World Cup.
 
spending will drive growth-en 
 
QNB Group forecasts real GDP growth of 6.5% in 2013 and 6.8% in 2014 as large-scale infrastructure spending by the government accelerates as part of the build-up towards the 2022 World Cup in Qatar. This will drive growth in construction and services despite a slowdown in the oil and gas sectors.
The economic impact of the World Cup is already being felt as accelerated infrastructure investment has led to a rapid increase in job creation. This has led to an influx of expatriate workers to fill the growing requirement for labor. Population growth began picking up in mid-2012 and reached double digits in June-2013 (11.3%), the world’s fastest rate.
Inflation is projected to increase moderately in 2013 (3.6%) and 2014 (3.8%). The expanding population will increase rents and domestic demand, resulting in moderately higher prices.
The report forecast the current account surplus to remain high (34.1% of GDP on average in 2013-14) as the traditional hydrocarbon exports receipts are expected to be boosted by exports of Gas-to-Liquids (GTL), petrochemicals and fertilizers.
The fiscal surplus is projected to narrow (4.7% of GDP in 2013 and 2.6% in 2014) owing to increased infrastructure investment while revenues are mildly reduced by lower oil prices.
The banking sector will benefit from the strong overall performance of the economy as rising infrastructure spending provides for ample credit opportunities. Coupled with further global expansion by local banks, this will maintain healthy profits.
 
 
 A PDF copy of the report is available on QNB’s website at Qatar Economics Insight 2013
 

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