Qatar’s policy response to COVID-19, conservative budget to support recovery

Qatar’s policy response to COVID-19, conservative budget to support recovery

Qatar's conservative 2021 budget and robust policy response to the COVID-19 crisis support a cyclical recovery, according to a new report from BofA Global Research. Qatar last week relaxed a few mobility restrictions as a part of a gradual plans to lift all curbs, its state media said. Nearly 40 percent of its population has been fully vaccinated, according to Our World in Data. The Gulf country introduced in mid-2020 an overall stimulus package of 75 billion riyals ($20.6 billion) or 10.7 percent of GDP, consisting of fiscal and monetary measures. The fiscal support package was 2.1 billion riyals according to the IMF. The Qatar Central Bank (QCB) provided additional liquidity to banks through a 50 billion-riyal window, introduced a 3 billion loan guarantee program and postponed all loan payments to banks and to the Qatar Development Bank for six months (extended until September 2021). The gas-rich member of the Gulf Cooperation Council has budgeted for a deficit of 34.6 billion Qatari riyals ($9.5 billion) or 6.1 percent of GDP, based on an oil price assumption of $40/bbl. This is down compared to the official 2020 budget target surplus of 0.5 billion riyals. For 2020, Qatar recorded a modest fiscal