Doha: Qatar’s economy is expected to grow at 4 percent next year, according to the World Economic Outlook released yesterday by the International Monetary Fund (IMF). In its previous edition of World Economic Outlook, released in April this year, IMF had estimated 3.6 percent growth in 2022 for Qatar’s economy.
Qatar’s economy is expected to grow at 1.9 percent in 2021, said the biannual report released yesterday. Middle East and North Africa (Mena) region is expected to clock a growth of 3.8 and 3.9 in 2021 and 2022, respectively.
The IMF has trimmed its 2021 global growth forecast to 5.9 percent from the 6 percent forecast it made in July. It left a 2022 global growth forecast unchanged at 4.9 percent.
“This modest headline revision, however, masks large downgrades for some countries,” the IMF said in the report, adding that worsening pandemic dynamics have darkened the outlook for low-income developing economies, while wealthy countries are struggling with supply disruptions.
“Compared to our July forecast, the global growth projection for 2021 has been revised down marginally to 5.9 percent and is unchanged for 2022 at 4.9 percent. This modest headline revision, however, masks large downgrades for some countries,” said the report.
According to the IMF global economic recovery continues amid a resurging pandemic that poses unique policy challenges. Vaccinations have proven effective at mitigating the adverse health impacts of COVID-19. However, unequal access to vaccines, vaccine hesitancy, and higher infectiousness have left many people still susceptible, providing fuel to the pandemic.
Oil prices are expected to increase in 2021, close to 60 percent above their low base for 2020.
Beyond 2022 global growth is projected to moderate to about 3.3 percent over the medium term. Advanced economy output is forecast to exceed pre-pandemic medium-term projections—largely reflecting sizable anticipated further policy support in the United States that includes measures to increase potential.
By contrast, persistent output losses are anticipated for the emerging market and developing economy group due to slower vaccine rollouts and generally less policy support compared to advanced economies.
Headline inflation rates have increased rapidly in the United States and in some emerging market and developing economies. In most cases, rising inflation reflects pandemic-related supply-demand mismatches and higher commodity prices compared to their low base from a year ago. For the most part, price pressures are expected to subside in 2022.
