QATAR’s economy continues to show sign of strength even as the global economy is recovering from the impact of COVID-19. Many economic indicators have validated the continued growth in Qatar’s economy. The latest indicator to confirm country’s solid growth is the latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre which signalled a strengthening non-energy economy in August.
According to the data, the overall business conditions improved at the fastest rate since July 2020, and the second sharpest since the survey began in April 2017. The key metrics of output and new business registered the fastest rates of growth signalled by the survey outside of the one-off post-lockdown bounce in July and August last year.
This healthy growth of both current and future business bodes well for Qatar’s non-oil economy, with exports that now well exceed pre-pandemic levels and in an increasing number of foreign markets. The PMI rose for the third month running to 58.2 in August, from 55.9 in July. The latest figure signalled the second-strongest overall improvement in operating conditions since the survey began in April 2017. Only in July 2020 had the headline PMI registered at a higher level as the economy reopened from the first COVID-19 lockdown.
This is not the first time the PMI data has showed strong recovery and growth. If we look at the previous data, the PMI survey data revealed the strength of Qatar economy. PMI survey data in January this year had also showed strong growth. As per QFC data, growth rates for both business activity and new business accelerated notably during January 2021 and were among the sharpest registered since the start of the survey.
Evidence of a sustained recovery was apparent as the non-oil sector geared up hiring for the longest period in the PMI’s history. January data also signalled lower average input prices, enabling firms to reduce their selling prices slightly.
The overall monthly Producer Price Index (PPI) of Qatar’s industrial sector for January 2021 was estimated at 57.3 points, showing an increase of 13 percent compared to previous month’s PPI (December 2020), according to official data released by Planning and Statistics Authority (PSA).
The Mining Sector PPI registered an increase of 14.3 percent in January 2021 compared with the PPI of December 2020. Qatar’s economy has once again demonstrated that it is strong enough to withstand any challenging situation.
With COVID-19 related restrictions now eased the economic activity has further increased in the country. This means the strong growth momentum in Qatar’s economy will continue in coming months.
