Qatar’s non-oil sector strength to counterbalance oil sector weakness in 2022: Oxford Economics

Qatar’s GDP grew at a 2.5% charge within the first quarter (Q1) of the yr, up from 2.2% in This autumn, 2021, Oxford Economics famous.
Progress in non-oil sectors corresponding to building, transportation, and actual property led the growth however was offset by mining and manufacturing declines.
The newest Buying Managers Index (PMI) information proceed to point an enchancment within the non-oil sector, corroborating our view that the non-oil sector energy will offset oil sector weak point and enhance general progress this yr.
“We see Qatar’s GDP rising at a 3.6% tempo in 2022,” Oxford Economics mentioned.
In 2023, Oxford Economics mentioned Qatar’s GDP will develop at 3.5%.
Oxford Economics has projected that Qatar’s present account surplus (as a proportion of its GDP) will likely be 16.7 this yr and 14.3 in 2023.
The nation’s fiscal stability (as a proportion of its GDP) will likely be 9.1 this yr and eight.9 in 2023.
Qatar’s inflation, Oxford Economics has projected to hit 3.9% this yr and 1.9% in 2023.
The June PMI survey for the three largest economies – Saudi Arabia, the UAE, and Qatar – continued to indicate robust non-oil non-public sector exercise. The Saudi print at 57 was the best prior to now eight months with enterprise actions bettering at the same time as price pressures intensified, main firms to go on added prices to clients.
The upturn within the non-oil economic system is primarily coming from Saudi Arabia’s building sector, the place output strengthened to a three-year excessive. Within the UAE, price pressures have reached an 11-year peak, with the ratio between enter and output prices at a report excessive.
That mentioned, demand stays sturdy, with new orders rising amid value promotions, Oxford Economics famous.
In a latest report, Oxford Economics mentioned the Center East and North Africa (MENA) area possesses the monetary and pure sources to transition in direction of low-carbon power sources, Oxford Economics mentioned in a report.
By leveraging present financial diversification plans, the area can bridge the funding hole with “greener” capital inventory. In doing so, some international locations within the GCC may emerge as leaders within the battle towards local weather change.
The report famous MENA has nice potential for photo voltaic and wind power, which will be harnessed with enhancements in storage expertise.
The area additionally has potential for hydrogen and carbon seize, storage, and use (CCUS), it mentioned.