The pace of recovery in Qatar’ economy continues to grow stronger. Many indicators have validated the strong recovery in the country economy. The latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre (QFC), released on Wednesday, have signalled a second successive record improvement in operating conditions in the non-energy economy.
Output growth quickened to a fresh series high, while new orders, quantity of purchases and backlogs rose at near-record rates. Strong demand continued to support job creation, but also led firms to raise their stockpiles. The PMI was unchanged at 67.5 in June, thereby signalling a second successive record in overall business conditions in Qatar’s non-oil sector.
The latest reading of the PMI was driven by new orders and output components, which together have a weight of 55% in the headline figure. Output growth quickened to a new series high while new business rose substantially, but at a slightly softer pace to that seen in May. June data covering Qatar’s financial services sector signalled another substantial increase in business activity. The rate of growth eased slightly from May’s record high but was the second-fastest since the series began in 2017.
The previous PMI numbers have also demonstrated the resilience of Qatar’s economy. The PMI increased to a high of 67.5 in May this year, up sharply from April’s previous peak of 63.6. This indicated the strongest overall improvement in business conditions in Qatar’s non-energy sector since the survey began over five years ago. A record uplift in new orders underpinned the strongest expansion in output in the survey’s five-year history. There were also mentions of greater tourist activity, the upcoming FIFA World Cup, retreating pandemic restrictions and shorter lead times.
The PMI rebounded from January’s six-month low of 57.6 to 61.4 in February, indicating a rapid improvement in overall business conditions. The 3.8-point rise in the headline figure recovered all the loss registered in the opening month of 2021 and was the third-largest month-on-month gain in the survey history.
Qatar is one of the most stable, resilient, and competitive economies in the world - powered by a rigorous diversification agenda, a vibrant environment for innovation, and a business-friendly ecosystem. It boasts a world-class climate for business and investment. Leading forecasts show the economy is poised for a solid and robust recovery in 2022.
The long-term growth prospects of Qatar’s economy are bright and the economy is expected to grow at a faster pace over the next decade.
