IMF: Qatar’s Economic Growth Slows Down
Doha has launched the “Third National Development Strategy”
The conclusions, reached by the International Monetary Fund (IMF) delegation after a visit to Doha from April 30 to May 9, were a cold shower for the Qatari government. IMF experts who discussed the country’s economic and financial development, outlook, and policy priorities with the Qatari authorities concluded that in the short term, Qatar’s economic growth will reach its lowest level since the 2022 World Cup.
The Fund said in a statement that “the normalization of (Qatar’s economic) development has continued after the World Cup, with growth of 1.3% of real gross domestic product (GDP) in 2023. Growth is likely to reach its lowest level in the short term and then gradually recover to 1.75% in 2024-2025, with growth in non-hydrocarbon resources getting support from public sector investment, the impact of the liquefied natural gas (LNG) expansion project, and strong tourism.”
According to the IMF, “the medium-term outlook is more favorable, with average economic growth expected to reach around 4.5% per year, driven by a significant expansion in LNG production with the completion of the North Field East and South projects, as well as more robust growth in the non-hydrocarbon sector.” In recent days, Qatar has announced its intention to sign a number of additional long-term LNG supply contracts.
The Qatari government is implementing the so-called Third National Development Strategy (NDS3), extended for the period 2024-2030. The IMF said it hoped these “bold initiatives would soon begin to bear fruit.” IMF experts “noted with satisfaction” that the NDS3 strategy is “in line with previous IMF proposals,” and for this reason it is “highly appreciated” by this international financial body.
“Continued prudence in macroeconomic and financial sector policies will further strengthen Qatar’s resilience in the context of high global uncertainty and geopolitical tensions. Accelerating structural reforms, led by NDS3, will unlock Qatar’s growth potential and improve climate resilience,” the statement said.
To download the full text from Pluralia’s website (PDF in English), follow the link