Mubasher: Qatar’s economic growth is expected to increase 2.6% in 2018, according to a report released by the World Bank on Wednesday.
The World Bank lowered its growth estimates to the economy of the world’s biggest exporter of liquefied natural gas (LNG) by 1.5% in 2017, as its gross domestic product (GDP) rose only 1.7%.
In June 2017, Saudi Arabia, Bahrain, the UAE, and Egypt cut their diplomatic and economic ties with Doha which in return weighed on its economy.
The world's richest country per capita has shored up deposits of public and banking sectors in a bid to alleviate the effects of the Gulf boycott.
The World Bank also forecast Qatar’s GDP growth would advance 3% in 2019 and 2020.
Meanwhile, the GCC economies may grow 2% in 2018 versus 0.7% in 2017, while the Middle East and North Africa (MENA) region will witness a sluggish growth, which could reach 1.8% in 2017, compared to 5% in 2016, the World Bank’s data showed.
These expectations are attributable to the oil output cut and the geopolitical tension in the region, the report said.
However, the MENA’s economies can recover due to the implementation of various reforms in financial policies, the World Bank noted.
“Key downside risks to the outlook include continued conflicts in the region, weakness in oil prices, and obstacles to reform progress, which are only partly offset by the effects of possible stronger-than-expected Euro Area activity,” the international financial institution concluded.
