ICAEW: Covid-19 Vaccine rollout to boost Qatari economic growth in 2021

ICAEW: Covid-19 Vaccine rollout to boost Qatari economic growth in 2021

DOHA – The latest Middle East Economic Update report for the first quarter of 2021, from Oxford Economics and commissioned by ICAEW, predicts that Qatar's economy will continue to expand steadily this year. While an increase in Covid-19 infections and hospitalisations triggered tighter restrictions, these measures will only weigh on the short-term economic outlook.

According to the report, Qatar's non-oil sector, which grew by an average of 1.2% per annum in 2017 to 2019 and contracted by an estimated 3.9% in 2020, is expected to grow by 3.3% in 2021.

An increase in vaccination rates and the expansion of vaccination centres distributing both the Pfizer and Moderna vaccines will facilitate the lifting of restrictions by the second half of 2021 and lead to a re-acceleration in economic growth. So far, about 15% of the Qatari population have received at least one vaccine dose, according to Qatar's Ministry of Public Health.

Overall, the report forecasts GDP growth of 2.8% this year, after an estimated 3.1% fall in 2020. It also states that growth will continue to expand steadily because of ongoing investment ahead of World Cup 2022 and rising gas production.

The impact of the decline in non-oil GDP on jobs has been relatively modest. Qatar