Qatar’s medium-term growth to average 5.5%: IMF

  • Date: 08-Feb-2024
  • Source: Zawya
  • Sector:Oil & Gas
  • Country:Qatar
  • Who else needs to know?

Qatar’s medium-term growth to average 5.5%: IMF

Qatar's medium-term growth is expected to average around 5.5%, boosted by significant LNG (liquefied natural gas) production expansion (65% by 2028) and the initial reform gains from implementing the third National Development Strategy (NDS3), according to the International Monetary Fund (IMF).

As global commodity prices decline and domestic demand normalises, headline inflation is to moderate to around 2% over the medium terms against the projected below 3% in 2023, said the IMF after concluding its Article IV consultation with Qatar.

Highlighting that the fiscal and current accounts will likely remain in "sizeable" surplus, the Bretton Wood's institution said hydrocarbon prices are likely to stay elevated, albeit declining over the medium term.

"Qatar’s LNG production expansion, combined with increasing demand from Asia and Europe, is set to boost LNG export over the medium term," it said.

Amid high hydrocarbon prices, both fiscal and current account positions strengthened significantly in 2022, with surpluses reaching 10.5% of GDP (gross domestic product) and 26.5% of GDP, respectively.

Finding that risks are broadly "balanced"; it said maintaining prudent macroeconomic policy and intensifying reform efforts will support Qatar’s resilience to shocks and accelerate its economic transformation.

The IMF suggested that the fiscal strategy should balance discipline with growth in the near term