Qatar GDP to grow by 18.5%: IMF
Gulf Times - 19 February, 2010
Qatar's gross domestic product will grow by 18.5% this year as gas exports increase, leaving the economy at risk of overheating in the medium term, the International Monetary Fund said.
The country should have “positive”economic prospects in the medium term, with continuing strong growth, moderate inflation and a fiscal and current account surplus in 2010, the Washington-based Fund said in a report late Wednesday. Inflation is forecast at 1% this year.
Rapid growth has “the potential of overheating the economy unless the government continues to prioritise and sequence its spending toward infrastructure spending,” the Fund said. Infrastructure projects should be phased in to avoid supply bottlenecks that could drive up inflation, it said.
Qatar is benefiting from higher oil and gas prices this year.
Qatar experienced three years of inflation above 10%, peaking at 15% in 2008, before a contraction in consumer prices of about 5% last year amid the global slowdown. The economy grew at almost 15% a year between 2006 and 2008, before slowing to 9% last year.
HE the Prime Minister Sheikh Hamad bin Jassim bin Jabor al-Thani said on February 11 that the government budget for the 2010-11 fiscal year would be “much larger”than the current one, as the country seeks to press forward with infrastructure projects. The budget for fiscal 2009-10 was QR94.5bn ($ 26bn).
The IMF said Qatar Central Bank had indicated that it was monitoring capital inflows carefully and was ready to adjust interest rates if needed.
Qatar did not join a wave of rate cuts by central banks in the region, Europe and the US in 2008, keeping its main repo rate at 5.55% since May 2008.
The global lender also said Qatar reiterated that the currency would continue to be pegged to the dollar for the time being.
Credit recovery seen
Qatari banks will see further credit recovery with lending accelerating to 17-19% this year, Bank of America Merrill Lynch has said in a report. “QNB will lead the pack at 26%”, it said. Last year, the local banks witnessed a ‘sharp credit recovery’ with credit growth of 11%, despite $ 4bn loan sales to the government, Bank of America Merrill Lynch said.
Gulf Times - 19 February, 2010
Qatar's gross domestic product will grow by 18.5% this year as gas exports increase, leaving the economy at risk of overheating in the medium term, the International Monetary Fund said.
The country should have “positive”economic prospects in the medium term, with continuing strong growth, moderate inflation and a fiscal and current account surplus in 2010, the Washington-based Fund said in a report late Wednesday. Inflation is forecast at 1% this year.
Rapid growth has “the potential of overheating the economy unless the government continues to prioritise and sequence its spending toward infrastructure spending,” the Fund said. Infrastructure projects should be phased in to avoid supply bottlenecks that could drive up inflation, it said.
Qatar is benefiting from higher oil and gas prices this year.
Qatar experienced three years of inflation above 10%, peaking at 15% in 2008, before a contraction in consumer prices of about 5% last year amid the global slowdown. The economy grew at almost 15% a year between 2006 and 2008, before slowing to 9% last year.
HE the Prime Minister Sheikh Hamad bin Jassim bin Jabor al-Thani said on February 11 that the government budget for the 2010-11 fiscal year would be “much larger”than the current one, as the country seeks to press forward with infrastructure projects. The budget for fiscal 2009-10 was QR94.5bn ($ 26bn).
The IMF said Qatar Central Bank had indicated that it was monitoring capital inflows carefully and was ready to adjust interest rates if needed.
Qatar did not join a wave of rate cuts by central banks in the region, Europe and the US in 2008, keeping its main repo rate at 5.55% since May 2008.
The global lender also said Qatar reiterated that the currency would continue to be pegged to the dollar for the time being.
Credit recovery seen
Qatari banks will see further credit recovery with lending accelerating to 17-19% this year, Bank of America Merrill Lynch has said in a report. “QNB will lead the pack at 26%”, it said. Last year, the local banks witnessed a ‘sharp credit recovery’ with credit growth of 11%, despite $ 4bn loan sales to the government, Bank of America Merrill Lynch said.