Qatar economy is primed for growth in the years ahead

Qatar’s economic fundamentals highlight the fact that it is a country primed for growth in the years ahead, says Martin Tricaud, HSBC Group General Manager, Deputy Chairman and CEO (Middle East, North Africa and Turkey -MENAT) region.

This comes after the news that Qatar’s gross domestic product fell 6.1% in the April-to-June period on an annual basis, according to estimates by the Planning and Statistics Authority. The economy contracted 1% in the same period of 2019.

The monetary policy response to Covid-19 meanwhile has provided broad support to both the private and public sectors. At the same time, fiscal pressure is easing as peak outlays for the FIFA World Cup in 2022, which promises to be a “great global moment” for Qatar, have passed.

Tricaud noted the Covid-19 pandemic has been a “shock” for the global economy and Qatar is not “immune”, although “we do see the country as being in a position of relative strength.”

HSBC economists forecast that the global economy will shrink by 4.1% in 2020 and that Qatar’s GDP will contract by around 4.0% year on year.

Purchasing Managers Index (PMI) data is already indicating that the recovery is underway in Qatar, recording consecutive months of expansion in July and August.