Qatar’s economy is growing despite the ongoing illegal blockade, says IMF

Qatar has been subjected to an illegal blockade by neighbouring countries since June 2017.

While its economy underwent some uncertainties during the early stages of the blockade, wise decisions and prudent action have seen the country free itself of the effects of the illegal siege.

That the country had absorbed the effects of the illegal siege got further confirmation recently via the International Monetary Fund (IMF).

The IMF expects #Qatar GDP growth to rise to 2.4% in 2018
“The near- to- medium-term outlook for the Qatari economy is benefiting from increased oil prices and prudent macroeconomic policies” @IMFNews

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— Ministry of Finance Qatar (@MoF_Qatar) November 15, 2018

The international body said that significant fiscal and external buffers enabled the country to successfully absorb adverse shocks from the 2014-16 decline in oil prices and the diplomatic rift with its neighbours, reported Gulf Times.

Thanks to present higher hydrocarbon prices, prudent fiscal policy, healthy financial system and accelerated structural reforms, Qatar’s near-to medium-term outlook remains favourable, said an IMF team that recently visited the country.

The IMF predicted that Qatar’s real GDP would be above 3% next year and would then stabilise annually at 2.7% between 2020 and 2023. This will be fuelled by gas exports, vast infrastructure projects and the hosting of the 2022 FIFA World Cup, it said.

“Qatar’s economic performance continues to strengthen. Significant fiscal and external buffers have enabled Qatar to successfully absorb the adverse shocks from the 2014-2016 decline in oil prices and the diplomatic rift,” said the IMF’s end-of-mission statement, according to Business Times.

The IMF also suggested that Qatar would introduce Value Added Tax (VAT) towards the end of 2019 or early 2020.

But Qatar could be susceptible to the ‘economic and financial impact of global trade tensions.’