Mubasher: Despite lower oil prices, high public investment in Qatar's $200 billion development plan and gas output gains linked to the launch of the Barzan production facility should see the country's economic performance remain relatively strong through 2016 and 2017, according to the latest report from NBK.
“Inflation is expected to edge up slowly, once the deflationary effect of soft international food and commodity prices begins to ease and once rental costs resume their upward trajectory. A stronger dollar should keep imported inflation in check, however.
With oil and gas revenues down by 40 per cent, Qatar is expected to record in 2016 its first fiscal deficit since 1999. Consequently, non-essential capital projects are likely to be scaled back amid a drive to rationalize spending and stimulate the private sector, according to NBK.
“Real GDP is forecast to grow by 5.4 per cent in 2016 and 5.1 per cent in 2017, from an expected increase of 4.9 per cent in 2015. This figure, while down from the 9.2 per cent annual average witnessed during 2010-2014, still puts Qatar among the most dynamic economies in the GCC," said NBK.
