Public investment programmes to keep Qatar’s economy up, says IMF report

qatarskyline-samagnew-flickrDespite the fall in the global price of oil, Qatar has maintained a steady rate of economic growth. (Image source: SamagNew/Flickr) Qatar’s ecomomic growth is expected to rise seven per cent in 2015, mainly due to implementation of public investment programmes, stated IMF’s latest report

The organisation’s Qatar Country Report has stated that even though the Barzan natural gas field will begin production, the government is increasing the impetus on public investment programmes.

Despite the fluctuations in oil prices, the country has managed to retain its role in the global gas market, while simultaneously diversifying its economy, noted IMF in its report. Qatar accounts for one-third of global liquefied natural gas (LNG) trade and has emerged as an important global financial investor, labor importer and donor as well. Authorities are executing a large public infrastructure programme to advance economic diversification and prepare for the FIFA 2022 World Cup.

To date, the Qatari economy has maintained strong growth momentum despite the large drop in oil prices since 2014, said the report. The country’s GDP rate has been stable at six per cent, mainly propelled by the growth of the non-hydrocarbon sector and banking. In addition, falling global commodity prices have aided with reducing inflation despite a rigid real estate market.

However, possible risks to the aforementioned macro-economic outlook include the possibility of lower-than-anticipated oil prices and side effects of planned public investments, stated IMF.

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