Enhanced private sector activity stimulated by higher government spending and growth in the non-oil and gas sector will drive Qatar’s real GDP growth to 6.5% this year and 6.8% in 2014, QNB has said in a report.
As the country’s oil and gas production remains flat, the growth drivers get shifted towards the large scale infrastructure development programme initiated by the government.
The infrastructure development will stimulate buoyant economic activity in construction, financial and services sectors, which are expected to increase by 13%, 8% and 9% respectively in 2013-14.
Qatar is the world’s fastest growing economy with a real GDP growth rate of 12% between 2008 and 2012, compared to China who was second with a growth of 9% during the same period.
“This rapid growth was primarily driven by the services sector and the gas sector. The services sector was driven by financial services, government services, logistics and wholesale and retail trade, while the gas sector was pushed up by the huge expansion in LNG production and exports,” QNB said in its soon-to-be-published ‘Qatar Economic Insight 2013’. Real GDP growth slowed down to 6.2% in 2012 as LNG production reached full capacity and growth was supported by lesser weighted manufacturing and services sectors.
Qatar has the third largest economy in the GCC and the sixth largest in the Mena region.
The country’s nominal GDP increased by 12% in 2012 after a rapid expansion of 14% between 2008 and 2012. The gas sector accounted for 42% of total GDP in 2012 and has been the key driver of overall growth as both production and energy prices increased.
The non-oil and gas sector also witnessed strong growth at 13% between 2008 and 2012, maintaining its share in overall GDP, supported by manufacturing, financial and other services.
QNB Group forecasts nominal GDP to increase by 4% in 2013 and decline by 1% in 2014, mainly due to lower oil price assumptions.
Real GDP shows the absolute change in the volume of economic output, by keeping prices constant at a certain base year, while nominal GDP shows the total value of economic output.
Gas and oil is the largest component of nominal GDP, accounting for 58% of GDP in 2012. It includes gas (LNG, pipeline, domestic use and condensates) and crude oil production. It employs just 6% of the total labour force in the country.
Services sector accounted for 29% of overall GDP in 2012. Financial and government services make up the largest sub-components of this sector, QNB said.
Non-oil Industry formed 14% of GDP in 2012. It consists of manufacturing, construction and utilities.
The manufacturing sector has witnessed significant growth over the past decade due to large expansions in petrochemicals and fertilisers, along with the production of gas-to-liquids (GTL).
Agriculture accounts for a very small proportion of GDP, which stood at 0.1% in 2012, QNB said.
Reported by: Caye Global News, Gulf Times
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