THE recovery in Qatar’s private sector is continuing which reflects resilience of country’s economy. The private sector of Qatar bounced back from the shock of COVID-19 outbreak and is now moving ahead on the path of recovery. The Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre and IHS Markit signalled a strengthening rate of expansion in the non-energy private sector economy in January. Growth rates for both business activity and new business accelerated notably during the month and were among the sharpest registered since the survey began in April 2017. The PMI rose from 51.8 in December to 53.9 in January, signalling the strongest overall improvement in non-energy business conditions in five months. The figures have shown consistent rise in previous months. The PMI rose to 52.5 in November, from 51.5 in October, to signal an improvement in operating conditions in the non-energy private sector. The latest reading was the seventh-highest on record since the series began in April 2017, compared with a long-run average of 49.6. The rise in the headline figure in November reflected stronger positive contributions from the output and employment indicators. Output rose at the fastest rate since August, while the rate of job creation was the strongest since January 2019 that marks a return to pre-pandemic trends. The exports from Qatar continue to rise despite challenges posed by COVID-19 outbreak. According to the Planning and Statistics Authority, Qatar’s foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR8.6bn in December 2020. In December 2020, the total exports of goods (including exports of goods of domestic origin and reexports) amounted to around QR17.1bn, showing an increase of 3.3 percent compared to November 2020. There is also a significant increase of 63.7 percent in the number of new firms licensed on the QFC platform in 2020, compared to 2019. The QFC registered 334 firms in 2020, compared to almost 200 firms registered over the same period in 2019. Ending the year on a high note, the QFC maintained its business growth for the 8th consecutive year, despite the unprecedented global economic slowdown as a result of the COVID-19 pandemic. The expansion of the QFC-registered firms, which represents a variety of industries, both financial and non-financial services, included a record increase of 139.5 percent in the digital sector. All the data indicate that the economy is now recovering strongly.
