Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Qatars real GDP expands at 6.0% pace in Q2  Join our daily free Newsletter

MENAFN - Arab News - 06/10/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) Qatars economy continued to maintain its strong growth momentum in the second quarter of 2013, according to QNB Group. Qatars real GDP expanded at a robust 6.0% pace (year-on-year), spurred by double-digit growth in construction, transport and communication, and financial, real estate, and business services. The economy expanded at a similar pace in the first quarter of 2013, according to revised figures. QNB Group expects real GDP growth to accelerate during the second half of the year (reaching 6.5 percent for the full year) and into 2014 (6.8 percent), as the implementation of large infrastructure projects accelerates and higher population boosts aggregate demand.
The growth figures for the second quarter of 2013 confirm the continued process of economic diversification of Qatars economy away from its traditional role as a hydrocarbon exporter toward a manufacturing and services hub. The oil and gas sector only expanded by 1 percent year-on-year in Q2, 2013, reflecting the moratorium on further exploration of the North Field. On the other hand, financial, real estate, and business services was the fastest growing sector (15.4 percent year-on-year), as banking intermediation accelerated and real estate services were boosted by the growing population. Construction activity accelerated (11.4 percent year-on-year) as Qatars infrastructure development program is gathering momentum. In addition, manufacturing grew by 6.4 percent, boosted by production from the new Pearl gas-to-liquids (GTL) facilities.
The actual figures for the second quarter of 2013 are in line with QNB Groups full-year forecast of 6.5 percent growth in 2013 and 6.8 percent in 2014. The acceleration in economic activity in the second half of 2013 is expected to be driven by the implementation of additional large infrastructure projects, like the Doha Metro Rail project. The key driver of growth will therefore continue to be the non-hydrocarbon sector at least until 2015, when the Barzan gas project is expected to start production.
This large infrastructure invement program will have a direct effect on growth through higher investment spending and an indirect effect through population growth. A new wave of expatriate workers is coming into Qatar to respond to higher labor demand from infrastructure spending. As a result, we expect population and thus the labor force to grow rapidly over the next two years. This increased level of job growth, and thus higher disposable incomes, should boost aggregate domestic consumption, which will be a key driving force of GDP growth in the medium term.

Whilst the rapid expansion of Qatars economy does not seem to be running into any major supply-side bottlenecks, the rapidly expanding population is indeed putting some strain on the countrys infrastructure networks. Indeed, with Qatars population more than tripling in the last 12 years, there has been a parallel increase in the number of vehicles on the roads (876,039 vehicles in 2012, compared with 287,500 in 2000). However, large infrastructure projects are being rolled out, such as, the new Doha Port and the new Hamad International Airport, which will greatly ease some of the infrastructure constrains facing the transportation system going forward.
Furthermore, consumer price index (CPI) inflation has stabilized at a moderate level (3.1 percent) in August 2013. Rents, which are nearly a third of the CPI, are rising but the rate of rental increases has been slowing in recent months while non-rent inflation has fallen. The latest CPI inflation data is in line with QNB Groups forecast for 3.6 percent inflation in 2013 as a whole, increasing slightly to 3.8 percent in 2014.
Looking ahead, with strong growth, stable inflation and high current account surpluses, Qatars economic momentum for the second half of 2013 and throughout 2014 is expected to strengthen. Large-scale infrastructure spending, as part of the build-up toward the 2022 World Cup in Qatar, will drive the expansion in construction and transportation, while strong population growth leads to higher aggregate demand for housing, financial and social services.

 


Arab News




  MENA News Headlines
 May 31 2016 - Qatari Emir heads to Saudi Arabia to participate in GCC 16th Consultative MeetingEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DOHA, 31st May, 2016 (WAM) -- H.H. the Qatari Emir, Sheikh Tamim bin Hamad Al-Thani, left Doha on Tuesday morning for the Kingdom of Saudi Arabia to take ...

 May 31 2016 - DP World future leaders visit UAE Embassy in SingaporeEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) SINGAPORE / DUBAI, 31st May, 2016 (WAM) -- Future leaders of DP World UAE Region met Abdullah Al Mandoos, Acting Charge d'Affaires of the UAE Embassy in ...

 May 31 2016 - UAE- EAD organises workshop on mercury emissions inventoryEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 31st May, 2016 (WAM) -- The Environment Agency - Abu Dhabi, EAD, yesterday organised a workshop to highlight the main findings of the Mercury ...

 May 31 2016 - UAE- Automation is key to sustaining operation efficiency and productivity: GASCOEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 31st May, 2016 (WAM) - Sultan Al Muhairi, Senior Vice President for Technical Affairs of Abu Dhabi Gas Industries, GASCO, has affirmed that ...

 May 31 2016 - UAE- UN envoy to Yemen says violations to cessation of hostilities in Yemen unacceptableEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) KUWAIT, 31st May, 2016 (WAM) -- UN Special Envoy to Yemen, Ismail Ould Cheikh Ahmed, has expressed concerns about violations of the cessation of hostilities ...

 May 31 2016 - UAE- Ajman sees 20% rise in visitors and tourism revenue in Q1 2016Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) AJMAN, 31st May, 2016 (WAM) -- The number of guest arrivals into the Emirate of Ajman during the first quarter of the year increased by 20 percent, ...

 May 31 2016 - Saudi Foreign Minister hails strong ties with EUEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) JEDDAH, 31st May, 2016 (WAM) -- Saudi Foreign Minister, Adel bin Ahmed Al-Jubeir, has said that the Kingdom of Saudi Arabia and the European Union enjoy ...

 May 31 2016 - UAE- Mohammed bin Rashid arrives in JeddahEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI, 31st May, 2016 (WAM) -- His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai, today arrived in ...

 May 31 2016 - Major fire at Indian arms depot kills 17Emirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) NAGPUR, Indian, 31st May, 2016 (WAM) -- At least 17 security personnel, including two young Army officers, were killed today in a major fire that broke out ...

 May 31 2016 - Secretariat of Abu Dhabi Executive Council delegation visits UAE-Jordanian Refugee CampEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI, 31st May, 2016 (WAM) -- A delegation from the General Secretariat of the Abu Dhabi Executive Council has visited the UAE-Jordanian camp for ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help