Qatar’s growth to accelerate this year; medium-term outlook buoyant on NFE: IMF

Qatar’s growth to accelerate this year; medium-term outlook buoyant on NFE: IMF

Qatar’s economy is expected to accelerate in 2022, with the bright medium-term outlook supported by the North Field expansion (NFE) project, which has the potential to lift the growth by 5.7% cumulatively and add around 3.5% of GDP (gross domestic product) in export receipts per year by 2027, according to the International Monetary Fund (IMF).

"Continued recovery in domestic demand, buoyed by favourable hydrocarbon prices and the start of the NF expansion project, as well as the World Cup induced buoyancy, are expected to boost non-hydrocarbon growth to 4.1% this year," IMF said in its Article IV consultation with Qatar.

With hydrocarbon growth likely reaching 2.3%, real GDP growth in 2022 is expected at 3.4%.

Strengthening domestic demand and higher energy and food prices are expected to push up inflation to 3.5% (period average) in 2022, the report said.

The current account surplus will likely widen further to 20% of GDP in 2022, thanks to high hydrocarbon prices. Over the medium term, the NF expansion project is set to benefit the non-hydrocarbon sector during the construction phase and boost the hydrocarbon sector once production starts, but it will further increase Qatar’s reliance on fossil fuel.

The NFE project is expected to raise Qatar’s LNG output