Growth forecast Lowered to 7.7%
Qatar expects an economic boom in 2015 despite oil falling
Qatari's economy is likely to grow 7.7 per cent in 2015, down slightly from previous forecasts but still higher than the current year's expected growth of 6.3 percent. According to Reuters, you had predicted the Ministry of development planning and national statistics today, the financial surplus jumps to OPEC member Qatar to 8.7 per cent of gross domestic product in fiscal 2015 from 5.5 percent in the previous forecast in June last year. She added that falling oil prices may reduce expectations if longer or if it becomes more acute, but it is likely that protection of macroeconomic financial center of the country, will maintain high growth in non-carbon activities for leading the overall economic momentum driven by investment spending and fiscal policy of expansion and population growth.
The drop in oil prices has an external risk factor essential if long-term or accentuated, however some flexibility is available for the State would probably protect the overall economy from the impact of this factor is expected to continue the budget in surplus during the years covered by the 2014-2016 but assessment of the surplus is expected to decline with the rapid implementation of the public investment program and the decline of hydrocarbon revenues and investment income transferred from Qatar Petroleum Company. According to the Ministry, the country risks the local economy is the size of the planned infrastructure projects before hosting Qatar FIFA World Cup in 2022 and complexity, the Ministry raised its forecast for inflation next year to 3.5 percent, saying increased spending significantly in a short period of time may fuel domestic inflationary pressures and raise the costs of projects.
A report issued by the Qatar National Bank Group, confirmed that the non-oil sector still drives economic growth and support the process of economic diversification in Qatar, adding that real GDP growth accelerated from 5.4 percent in the first quarter of 2014 to 5.7 per cent during the second quarter of this year. The report said that the rapid growth in the non-oil sector (11.3 per cent) was driven by large investments in major infrastructure projects and the steady increase in the number of population, while the declining growth of the oil and gas sector by 2.2 percent on an annual basis as a result of the decline in crude oil production and a pause in production of gas. Recent growth figures reinforced the process of rapid diversification taking place in Qatar which aims to move away from the traditional role of Qatar as a source of oil and gas and become a center of industry and services.
The fastest growing sectors are finance, real estate and business services, where the acceleration of growth in the banking and brokerage industry real estate services by increasing demand for housing as a result of population growth, as trade and hotel sectors grew on the back of population growth (country living) and increased tourism activity. And expected real GDP grew strongly up to 6.3 percent this year as rising to 7.7 per cent in 2015, driven by the expansion of non-hydrocarbon economy.