ID :
167174
Thu, 03/10/2011 - 12:17
Auther :
Shortlink :
https://oananews.org//node/167174
The shortlink copeid
IMF Projects Qatar's 2011 Real GDP to Expand to 20%
Doha, March 10 (QNA) - The International Monetary Fund (IMF) projects Qatar's Real Gross Domestic Product (GDP) to expand to 20% in 2011 from 16% last year.
The IMF's Executive Board, in its assessment report of Qatar, has praised the country for "weathering the global financial crisis exceptionally well by its strong policy response".
Qatar's enhancement of Liquefied Natural Gas (LNG) capacity, large government support to the banking system, and increase in public spending helped sustain high growth rates through the global crisis, the report said.
The IMF had positive remarks about Qatar's banking system saying it "is well capitalized and profitable.
Banks had a high capital adequacy ratio of 17.4%, low nonperforming loans ratio of 1.9%, and a comfortable provisioning coverage of 85% at end August 2010.
Profitability was 20% higher in the first three quarters of 2010, compared to the same period of 2009."
The IMF directors considered that the main challenge for Qatar Central Bank (QCB) will be to manage the credit cycle without fuelling inflation.
Given the pegged exchange rate, they recommended the QCB rely on macro prudential instruments to help contain credit growth and potential surges in capital inflows.
Directors noted the staff s assessment that the Qatari riyal is in line with fundamentals and agreed that the peg to the U.S. dollar remains appropriate. The economic outlook for Qatar remains positive.
Continued government investment will keep growth high beyond 2011. While the self-imposed moratorium on increasing gas production after 2012 will lead to a sharp tapering off of growth in the hydrocarbon sector, government investments will support an average growth of 9% in the nonhydrocarbon sectors during 2012 15, the IMF said in its report.
The IMF's Executive Board, in its assessment report of Qatar, has praised the country for "weathering the global financial crisis exceptionally well by its strong policy response".
Qatar's enhancement of Liquefied Natural Gas (LNG) capacity, large government support to the banking system, and increase in public spending helped sustain high growth rates through the global crisis, the report said.
The IMF had positive remarks about Qatar's banking system saying it "is well capitalized and profitable.
Banks had a high capital adequacy ratio of 17.4%, low nonperforming loans ratio of 1.9%, and a comfortable provisioning coverage of 85% at end August 2010.
Profitability was 20% higher in the first three quarters of 2010, compared to the same period of 2009."
The IMF directors considered that the main challenge for Qatar Central Bank (QCB) will be to manage the credit cycle without fuelling inflation.
Given the pegged exchange rate, they recommended the QCB rely on macro prudential instruments to help contain credit growth and potential surges in capital inflows.
Directors noted the staff s assessment that the Qatari riyal is in line with fundamentals and agreed that the peg to the U.S. dollar remains appropriate. The economic outlook for Qatar remains positive.
Continued government investment will keep growth high beyond 2011. While the self-imposed moratorium on increasing gas production after 2012 will lead to a sharp tapering off of growth in the hydrocarbon sector, government investments will support an average growth of 9% in the nonhydrocarbon sectors during 2012 15, the IMF said in its report.
