Qatar's GDP growth set to slow to 2.7% in 2023, says S&P

Qatar's real GDP growth is set to slow to 2.7% in 2023 and then bounce slightly higher to 3.4% in 2024, according to S&P Global Market Intelligence.

In 2022, the tiny gas rich Qatar grew at 4.8%--a level unseen since the middle of the last decade--lifted by robust economic activity in Q4.

According to the state Planning and Statistics Authority, Qatar’s real GDP grew by 8% year-on-year (YoY) in Q4 2022 to 2.7%.

The Q4 growth was in line with expectations and propped up by strong services sector activity amid the FIFA World Cup hosting in November–December, said Jamil Naayem, principal economist, S&P Global Market Intelligence.

"We continue to expect slower real GDP expansion throughout 2023 as weaker global demand, higher domestic interest rates, and less favorable Q4 base effects weigh on real GDP growth performances. We expect 2.7% real GDP growth for 2023 and a slightly higher 3.4% increase in 2024."

Qatar was the world’s top exporter of liquefied natural gas last year alongside the US, shipping 104.8 billion cubic meters, according to Refinitiv data.

"We forecast lower global commodity prices on a yearly basis, receding global supply chain disruption concerns, and higher borrowing costs to help reduce inflationary pressures in Qatar. We believe that average annual inflation will decline from a high of 5.0% in 2022 to 3.8% in 2023 before falling further to 3.1% in 2024," said S&P.




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