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Satyendra Pathak
Doha
Qatar's economic growth is expected to accelerate as the industrial production is growing at a solid pace in the country, FocusEconomics has said in its latest report.
FocusEconomics panellists have forecast economic growth of 2.8 percent in Qatar in 2019, which is up 0.1 percentage points from last month's projection.
Qatar's economic growth accelerated in the second quarter compared to the first with growth driven by a large output increase in the construction sector, which continues to benefit from infrastructure preparations for the 2022 World Cup, the report said.
There was also a strong expansion in the manufacturing sector in the second quarter, the report said.
Turning to the third quarter, the report said, Qatar's economy appeared to perform well with industrial production growing at a solid pace in July and August.
Going forward, economic growth will be driven by higher energy prices, increased oil and gas production and the infrastructure push related to the 2022 World Cup, it said.
According to the report, inflation in Qatar fell to 0.4 percent year-on-year in September, contrasting the 0.8 percent increase recorded in August.
"September's reading was due to lower prices for communications, recreation and culture, and food and beverages. Our panellists expect inflation to average 2.6 percent in 2019 and 2.2 percent in 2020," the report said. The report has indicated that inflation in the country would remain below 2.5 percent for the next three years after 2020.
The GDP per capita in Qatar will also increase from $60,694 in 2017 to $62,257 in 2018 and reach up to $77,779 in 2022, the report said.
According to the annual data released as part of the report, the overnight lending rate in the country would continue to rise from the current 5.5 percent and reach up to 5.85 percent by 2023. Qatari riyal will continue to be pegged at $3.64 in the years to come, the report said.
According to the report, the country would witness a sustained increase in both imports and exports.
While the merchandise exports from the country are expected to rise from $67.4 billion in 2017 to $83.9 billion in 2018, the report said, merchandise imports would increase from $30.7 billion in 2017 to $33.1 billion in 2018 and rise up to $53.2 billion in 2023.
FocusEconomics, a leading provider of economic analysis in the world, has also forecast that Qatar's trade balance would rise from $36.7 billion in 2017 to $50.8 billion in 2018.
The report has also projected that Qatar's current account balance would account for 8.6 percent of the total GDP in 2018.
Qatar's current account balance turned positive to $6.4 billion in 2017 and is expected to rise to $14.9 billion in 2018, the report said.
