IMF Expects Qatar's GDP Growth to Rise 3.1 Percent in 2019

Doha, November 15 (QNA) - International Monetary Fund (IMF) expects that Qatar's GDP growth is projected to rise 3.1 percent in 2019, and 2.4 percent in 2018. The 2019 budget is expected to contain overall expenditure growth, with continued emphasis on allocation to critical sectors (health and education). The current account surplus is projected at about 7 percent of GDP in 2019. QCB's foreign exchange reserves are expected to increase further, reaching about US$36 billion in 2019. An International Monetary Fund (IMF) team which visited Doha from October 29-November 4 to assess recent economic developments said that "Qatar's economic performance continues to strengthen. Non-hydrocarbon output grew by about 6 percent during the first half of 2018, as the economy recovered from the impact of the siege and oil prices surged." However, hydrocarbon output fell by about 1.6 percent during the same period, culminating in overall real GDP growth of 2.4 percent. Real GDP growth of 2.4 percent is projected for 2018 as a whole up from 1.6 percent in 2017. The statement said that headline inflation remains subdued. Fiscal and external positions are strengthening, and the central banks foreign exchange reserves have increased. Monetary and financial conditions have improved significantly, with banks attracting non-resident flows and were able to reduce reliance on the financial support from the fiscal and monetary authorities. The authorities plan to introduce a VAT, with an implementation target date towards the end of 2019 or early 2020 The near- to- medium-term outlook for the Qatari economy is benefiting from increased oil prices and prudent macroeconomic policies. We anticipate overall real GDP growth of 3.1 percent in 2019, with still robust non-hydrocarbon growth and recovery in oil and gas production, the statement added. Over the course of 2020-2023, real GDP growth of about 2.7 percent annually is projected, underpinned by still significant public infrastructure spending, expansion of liquid natural gas production, and the hosting of 2022 World Cup. (QNA)