Qatar's economy has once again showed sign of resilience as exports have risen consistently in the past few months. The figures released recently have showed that Qatar has maintained trade surplus in the past several months, helped by the rise in exports. The rising exports reflect the strength of domestic economy which has performed well despite difficult situation created by coronavirus pandemic.
According to the Planning and Statistics Authority, Qatar has recorded a merchandise trade balance surplus (difference between total exports and imports) of QR39.9bn in the first quarter of this year, up from QR33.6bn in the first quarter of 2020. LNG, mineral fuels, lubricants, related materials, chemicals and related products were the main exported goods from Qatar during the period.
The value of Qatar’s total exports (including exports of domestic goods and re-exports) in the first quarter of 2021, amounted to QR64bn, increased by QR4.5bn (7.5 percent) QR59.5bn in Q1 of 2020. Exports increased by nearly QR14.9bn or 30.4 percent compared to the fourth quarter of 2020. Qatar’s foreign merchandise trade surplus was at QR24.7bn in the fourth quarter of last year (Q4, 2020), down from QR38.4bn recorded for the corresponding quarter in 2019.
Growth in trade surplus and exports is a good sign and it will boost the local economy. Now officials in Qatar have said that restrictions imposed to curb the spread of coronavirus infections are expected to be eased from May 28. This move will further accelerate the pace of economic growth in Qatar. Apart from local economy, other countries have also started easing restrictions.
Easing of restrictions will lead to increase in activities in these countries creating more demand of goods and services. This will increased the pace of global economy recovery and will further increase the demand for energy and other commodities.
The rise in demand of energy has always worked in favour of Qatar as the country is the biggest exporter of LNG in the world. Several other indicators have also showed signs of strong recovery in Qatari economy.
The overall monthly Producer Price Index (PPI) of Qatar’s industrial sector for March 2021 was estimated at 60.8 points, showing an increase of 3.6 percent compared to the previous month’s PPI, official data released by the Planning and Statistics Authority showed. Supported by the resilience of Qatari economy and the proactive measures by the government departments, the trade surplus is expected to rise in coming months.
