Qatar’s economy is on the path of sustained economic recovery that shows its economic resilience. Many indicators and figures released recently have shown that the economic activity in the country is on upward trajectory.
According to the recent Purchasing Managers’ Index (PMI) survey data Qatar’s non-energy private sector economy continued to expand towards the end of 2020. The rates of expansion in business activity, backlogs and employment all accelerated during the month, while new business registered another marked increase and the 12-month outlook for output remained positive.
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 International Monetary Fund (IMF) has said that the State of Qatar is the only country in the region that was on track to achieve a budget surplus in 2020.
Last month, S&P Global Ratings had affirmed Qatar’s sovereign credit rating at AA-/Stable/A-1+, with a stable outlook. The stable outlook indicates that despite a sharp economic contraction and low hydrocarbon prices, the rating agency expects Qatar’s credit profile to remain resilient, supported by its wealthy economy and strong government and external net asset positions.
Despite the sharp COVID-19-induced decline in economic activity and low hydrocarbon prices, income levels in Qatar remain among the highest of rated sovereigns, supporting its strong credit profile.
Despite low oil prices, S&P expects Qatar would continue to generate surpluses in its budgetary accounts on the general government level.
The government plans to increase liquefied natural gas production by about 64 percent to 126 million tonnes annually (approximately 3.1 million barrels per day of oil equivalent) from end-2025 through 2027. Statistics issued yesterday by Planning and Statistics Authority revealed that the number of building permits issued by various municipalities in the country reached 762 last November, an increase of 4 percent compared to last October, during which 731 licenses were issued.
Qatar’s strong economy provides protection and support for different economic sectors. The country is expected to witness all round economic growth in medium term driven by prudent policies.
