Qatar’s economic growth poised for a rebound, says QNB
Despite moderation in Qatar’s real GDP expansion in the first half of 2016, QNB believes growth is poised to rebound in the second half of this year, according to Gulf Times.
Qatar’s Ministry of Development Planning and Statistics (MDPS) had released GDP data for the second quarter of 2016 last week.
In real terms, the economy picked up by 2% year-over-year in the second quarter, compared to a 1.4% gain in the first quarter. This puts real GDP growth for the first half of the year at 1.7% year-over-year.
The hydrocarbon sector contracted by 1.2% year-over-year in the second quarter, however, this was an improvement over the decline of 2.9% year-over-year experienced in the first quarter and drove overall real GDP higher.
Through the first half of the year, the hydrocarbon sector declined by 2% year-over-year.
In the first half as a whole, nominal hydrocarbon GDP declined by 37.8%. This sharp decline is largely explained by the weakness in global crude oil prices experienced in early 2016. Consequently, the hydrocarbon sector now accounts for just below 30% of the Qatari economy.
According to QNB, weaker hydrocarbon production appears to have bottomed out and historically government spending has been stronger in the second half of the year, aiding non-hydrocarbon growth.
Moreover, population growth has picked up to 8.7% in the third quarter, compared to 6.7% in the first half of the year. This should support demand for the service sector, adding to non-hydrocarbon sector growth, QNB said.
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