Mubasher: Qatar’s economy is expected to grow 2.2% in 2017, with further promising growth in 2018, Qatar National Bank (QNB) said in a new report released on Sunday.

Qatar’s economy is capable of maintaining its flexibility and position against the Arab-country blockade, the report said.

In September, several Arab countries led by Saudi Arabia, Egypt, Bahrain, the UAE, cut diplomatic and transport ties with Qatar for political reasons.

The bank expects momentum to pick up in the fourth quarter resulting in an annual gross domestic product (GDP) growth of 2.2% in 2017.

Qatar’s GDP increased 1.9% year-on-year in Q3-17, encouraged by the oil sector, which jumped 0.2%, according to the data.

The non-oil sector was almost stable at 3.6% in Q3-17, compared to 3.7% in Q3-16.

Last month, Qatari authorities unveiled the fiscal budget for 2018, outlining higher spending but also stronger revenues resulting in a smaller projected deficit, the report stated.

Under the new budget, Qatar looks to increase spending on education, health, and construction projects ahead of the FIFA 2022 World Cup.

Moreover, the Qatari government plans to award QAR 29 billion ($8 billion) in contracts for the private sector to encourage diversification, a measure taken as a response to the blockade.