The economy of Qatar’s non-energy private sector has seen growth in the fourth quarter of 2020, due to sustained rebound in business conditions in Qatar.
As per the Purchasing Managers’ Index (PMI) survey data for October, the output and new business both registered an increase in growth rate for fourth successive month, while the employment index also saw its highest levels of increase since March.
Firms reported increased customer numbers and were hopeful of further improvement in business in the coming months, with the easing of restrictions.
The Qatar PMI indices are collected from survey responses by a panel of around 400 private sector companies. The panel covers construction, manufacturing, retail, wholesale and services sectors and reflects the structure of non-energy economy as per official national accounts data.
The PMI registered 51.5 in October, marking a fractional increase from 51.4 in September, driven by strong business expectations and realized transactions.
The latest figure was the third-highest since July 2018 and signalled a sustained improvement in business conditions in the non-energy private sector economy.
The strongest performing areas in the month of October was construction, followed by manufacturing, wholesale, retail and services.
Speaking on this, the Managing Director of Business Development at QFC Authority, Alanoud bint Hamad Al Thani, said “Having signalled a rebound in the non-energy private sector economy in the third quarter, the October PMI survey data suggests that the recovery has been sustained moving into the final quarter of 2020. The Qatari economy shrank by 6.1 percent in the second quarter as lockdown measures were introduced to fight Covid-19, but the subsequent lifting of these restrictions has led to a swift resumption in growth.”
"Third quarter PMI data are consistent with a year-on-year rise in GDP of 2.7 percent. Moreover, several survey indicators are pointing to sustained output growth in the final months of 2020, including new business, employment, backlogs and purchasing activity,” Al Thani said.
The PMI data for Q3 2020 indicates a rebound in GDP, consistent with a 2.7 percent annual increase.