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Doha: The Minister of Economy and Finance H E Yousuf Hussein Kamal expects the economy of Qatar to achieve a growth of 5.4 percent this year. He said that economic growth prospects over the next few years will be around five percent annually.
Addressing the opening session of the Euromoney Qatar Conference, the Minister said the state’s efforts to achieve the optimum utilisation of energy sources and the diversification of economic activity helped Qatar’s economy achieve record growth rates over the past years with the average compound annual growth rate of the Gross Domestic Product (GDP) at constant prices reaching 14.8 percent in 2011.
He pointed out that Qatar has developed a fundamental objective in Qatar National Vision 2030 which is to achieve financial stability through sound fiscal policies and a effective financial system, noting that the vision’s interest in financial stability comes in the quest of the state to achieve economic diversification and to strengthen the capacity of the national economy to absorb global economy shocks which require a powerful financial system able to support various economic sectors.
The economic diversification strategy includes giant projects for the establishment of an advanced infrastructure to serve different economic sectors, which need a powerful financial system able to provide funding for these projects, which many of them are currently under way, the Minister of Economy and Finance said adding that due to this strategy the Qatari banking sector managed to achieve sustained growth over the past years.
Minister added that GCC states are enjoying high growth rates and optimistic prospects with regard to the future economic performance, thanks to high energy prices, continued focus on development projects and expansion of the private sector participation in economic activities, explaining that the International Monetary Fund (IMF) estimated the high rate of growth in GDP at constant prices in the region to 5.6 percent in 2012.
Qatar Central Bank QCB Governor, H E Sheikh Abdullah bin Saud Al Thani has said that Qatar’s Gross Domestic Product GDP increased by 18 percent at current prices in the first half of this year as compared with the corresponding period last year to QR349bn, while the annual rate of inflation remained at less than three percent through October.
He said Qatar’s current account in the first half recorded a QR71bn surplus, or more than 20 percent of GDP, whereas real GDP grew 14 percent, as compared with less than two percent in developed countries and four percent for the world economy. Qatari banks assets, through October rose to QR800bn, bank deposits through October grew 21 percent annually to QR348bn, credit facilities and financing grew 26 percent in the same period to QR485bn.