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Qatar economy to grow end-2015 -Capital Economics

Qatar economy to grow end-2015 -Capital Economics
Photo Credit: Arabianeye-Reuters


Cairo-Mubasher: Qatar’s economy is likely to grow by 5-5.5% in 2015-2016, according to a report released by Capital Economics. 


The report showed that Qatar’s gross domestic product (GDP) represents around 6.3% of the Middle East and North Africa (MENA) region’s overall GDP. 


Dr Saleh bin Mohammad Al Nabit, Minister of Development Planning and Statistics, has earlier expected Qatar’s domestic economy to grow by 7.8% by the end of 2015, backed by strong growth in the non-hydrocarbon sector.


During the third quarter of 2014, the country’s economy growth reached 4.1% with local output exceeding QAR 193 billion. 


Qatar’s inflation reached 3% by the end of 2014, the report highlighted, adding that inflation is expected to decline to 2.5% by the end of 2015 and rise again to 3% by the end of 2016.


In spite of the fall in oil prices, the Qatari authorities look set to plough ahead with their ambitious investment program that depends on infrastructure and World Cup projects.


The government is able to bridge the budget deficit from its reserves in the coming years, according to the report.


Furthermore, Capital Economics expected that the plunge in oil prices could result in a rise in bad loans.