Doha: Qatar’s economy is expected to grow this year and is projected to grow fastest at GCC in 2023 and 2024.
According to the latest World Bank report, real gross domestic product (GDP) is projected to increase by 4.9% in 2022, followed by 4.5% and 4.4% in 2023 and 2024, respectively.
Qatar’s stable and resilient economy is growing rapidly. The country’s high per capita income, huge hydrocarbon reserves, and strong economic fundamentals support its strong credit profile.
The World Bank’s latest Global Economic Outlook Report for June raised Qatar’s projected GDP growth rate for 2022 to 4.9% against the backdrop of a slowdown in global GDP growth rate (2.9%). The report further reaffirmed the forecast that Qatar’s economy will grow fastest at GCC in 2023 and 2024.
Production in the Middle East and North Africa (Mena) regions is expected to increase by 5.3% in 2022. This is 0.9 points higher than previously expected, partly reflecting the rise in oil prices. This will be the fastest growth in the region in 10 years. Mena’s economic recovery temporarily slowed at the turn of the year as the outbreak of Omicron slowed growth. Newly identified cases of COVID-19 have since declined with widespread decline in all economies.
Following the slowdown caused by the pandemic, the Russian Federation invaded Ukraine, raising commodity prices, tightening funding conditions (easing monetary easing in both developed and regional regions), and further slowing global growth. It led to. However, the impact on the region is significantly different.
The report said economic activity in the Mena region remained strong, despite the short-term blow of the Omicron outbreak and the net loss to oil importers from the war in Ukraine. Oil exporters are benefiting from increased oil revenues and a recovery in the non-oil sector.
Growth in the region will be 5.3% in 2022, supported by increased oil revenues, structural reforms in some economies (Egypt, Saudi Arabia, United Arab Emirates) and the general decline of the negative effects of the pandemic. It is expected to remain firm until.
These growth forecasts represent an upward revision of 0.9 percentage points from the January forecast, primarily due to improved outlook for the GCC economy. Regional growth is expected to reach its fastest rate in 10 years in 2022, but the rebound could have been even stronger if Russia’s invasion of Ukraine did not adversely affect oil importers. The war has weakened external demand, increased uncertainty and pushed up food and energy prices.
Mena’s activity is expected to slow until 2024, and growth in the region will return to 3.2% once service activity stabilizes and policy support is withdrawn, the report added.
The World Bank said growth is expected to recover to its highest level in 10 years in 2022, outpacing the worsening outlook for oil-importing countries and significantly improving the outlook for oil-exporting countries. Oil exporters are gradually catching up with pre-pandemic production trends, but the gap between oil importers is expected to remain large. Increased fiscal revenues and lower spending have resulted in a significant reduction in the budget deficit of oil exporters.