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QNA
Doha
Qatar's gross domestic product (GDP) is expected to rise by 3.1 percent in 2019 and 2.4 percent in 2018, the International Monetary Fund (IMF) has said in its latest report.
According to the report, Qatar is expected to contain overall expenditure growth with continued emphasis on allocation to critical sectors like health and education in its budget for 2019.
Qatar's current account surplus is projected at about 7 percent of the country's GDP in 2019, the report said, adding that Qatar Central Bank's foreign exchange reserves are expected to increase further to reach about $36 billion in 2019.
An IMF team that visited Doha from October 29 to November 4 to assess recent economic developments, said that Qatar's economic performance continues to strengthen.
Non-hydrocarbon output grew by about 6 percent during the first half of 2018, as the economy recovered from the impact of the siege and oil prices surged, the report said.
However, hydrocarbon output fell by about 1.6 percent during the same period, culminating in overall real GDP growth of 2.4 percent.
Real GDP growth of 2.4 percent is projected for 2018 as a whole, up from 1.6 percent in 2017, the report said.
The statement said that headline inflation remains subdued. Fiscal and external positions are strengthening, and the central bank's foreign exchange reserves have increased.
Monetary and financial conditions have improved significantly, with banks attracting non-resident flows. The banks were also able to reduce reliance on financial support from fiscal and monetary authorities.
The authorities plan to introduce VAT, with an implementation target date towards the end of 2019 or early 2020.
The near- to- medium-term outlook for the Qatari economy is benefiting from increased oil prices and prudent macroeconomic policies, the report said.
"We anticipate overall real GDP growth of 3.1 percent in 2019, with still robust non-hydrocarbon growth and recovery in oil and gas production," it said.
Over the course of 2020-2023, the report said, the country's real GDP growth of about 2.7 percent annually is projected, underpinned by still significant public infrastructure spending, expansion of liquid natural gas production, and the hosting of 2022 World Cup.
