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Satyendra Pathak
Doha
Qatar is an active partner of the International Monetary Fund (IMF) and is on the way to becoming an advanced economy, IMF Managing Director Christine Lagarde has said.
"Qatar's efforts to diversify its economy away from hydrocarbons are paying off, leading to further economic growth," Lagarde said at a roundtable meeting to discuss the global economy and prospects for the economies of the Middle East countries in Doha on Monday.
The IMF is ready to help Qatar become an advanced economy, she said.
"Qatar's non-oil sector is growing at an impressive rate, indicating diversification that is generating growth. Qatar's non-oil sector will continue to grow at more than 4.2 percent in 2018 and 2019," she said.
The rise in oil prices would further boost the economic diversification process, she said.
She said Qatar's efforts to increase the participation of the private sector in the national economy are in the right direction.
Lagarde, however, said more efforts are needed to reach a balance between the country's public sector and the private sector.
The IMF chief said global economies in general and the GCC economies in particular seem to have worked for growth. The global economy is in a sweet spot as recovery has taken roots in many corners of the world, she added.
Around 120 economies, accounting for three-quarters of world GDP, have seen a pickup in growth in year-on-year terms in 2017. Global output is estimated to have grown by 3.7 percent in 2017, which is 0.5 percent higher than in 2016.
The IMF chief said global growth forecasts for 2018 and 2019 have been revised upward by 0.2 percentage point to 3.9 percent. To keep the growth momentum intact, the IMF chief urged Arab countries to slash public spending and subsidies.
Despite low oil prices weighing on the finances of Arab oil exporters, she said, public spending remains very high.
Lagarde said Arab economies need to focus on cutting costly subsidies and public wage bills.
Terming oil subsidies as unjustifiable, she said GCC countries needed to undertake more stringent reforms to cut energy subsidies.
