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Qatar budget deficit to reach 1.5% in 2017 – QNB

Qatar budget deficit to reach 1.5% in 2017 – QNB
(Photo Credit: Arabianeye-Reuters)
QNB
QNBK
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Doha – Mubasher: Qatar’s budget deficit is expected to decrease to 1.5% of the gross domestic product (GDP) in 2017 from 7.2% in 2016, according to a report by Qatar National Bank (QNB) on Sunday.

It is also expected that the deficit will turn into a surplus of 1% in 2018 and 2.3% in 2019, QNB’s report added.

The increase in oil prices will boost the government’s revenues, which will ease financial constraints, the report noted.

The Brent crude oil price is expected to amount to $55 per barrel (pb) in 2017, and to reach $60 pb in 2019, the bank’s reported indicated.

Spending in 2017 is expected to decrease and the implementation of the value-added tax (VAT) will support Qatar’s revenues in 2018, QNB forecast.

The oil and gas sector is expected to fall 5% by the end of 2017, due to the decline in oil production, in addition to the output cut of the Organization of Petroleum Exporting Countries (OPEC).

Qatar’s GDP is expected to rise to 2.6% from 2.2% by the end of 2017, a previous report by QNB stated.