Mubasher: Economic growth in Qatar is slowing down, according to a recent report by the World Bank Group on the economic outlook in the Middle East and North Africe (MENA) region.

The MENA Economic Monitor report expects Qatari growth rate to decline to 2% in 2017, down from 2.2% in 2016.

The report noted that the the decline in the market activity and confidence in the non-oil sector, due to the Arab boycott by Egypt, Saudi Arabia, the UAE, and Bahrain, is the main reason for the decline in growth rate in Qatar.

As per the report, the boycott led to a sharp drop in imports, which in return resulted in a rise in the cost of transferring goods, services, and cash flows through the neighboring countries, which led to weakening investors’ confidence.

Regarding the economic outlook of the Qatari economy, the World Bank report indicated that growth rates will remain slow due to the economic boycott.

The report also stressed the risk of matters deteriorating due to the diplomatic crisis, noting that on the medium run the emergence of new liquefied natural gas (LNG) suppliers in the United States, East Asia and Africa threatens the possibility of a decline in global gas prices, adding that risks include global capital volatility that affects capital flows and the cost of financing at a time when Qatar is experiencing weak growth.