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 investment 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
 Apr 17 2015 - UAE's Emaar Properties expects USD1.01b net profit in 2015MENAFN
(MENAFN) Dubai-based Emaar Properties expects an accumulated net profit of about USD1.01 billion in 2015, showing an increase over analysts' forecasts, according to a corporate presentation, Reuters ...

 Apr 17 2015 - UAE imports USD199.3m of Swedish woodMENAFN
(MENAFN) The UAE imported a total of USD199.3 million worth of wood from Sweden, marking 25 percent of the European country's wood exports to the region, Emirates News Agency reported.Sweden exported ...

 Apr 17 2015 - Tunisia signs USD106.31m loan with European CommissionMENAFN
(MENAFN) The government of Tunisia is set to receive USD106.31 million loan from the European Commission who approved the payment on behalf of the EU, Kuwait News Agency reported.The sum comprises ...

 Apr 17 2015 - Al Rayyan and Al Ahli register winsThe Peninsula
(MENAFN - The Peninsula) Cage Calvin (right) of Al Wakrah attempts to break through the Al Rayyan defence during the Qatar Basketball Cup 2015 at Al Gharafa Stadium yesterday. Al Rayyan won 102-74. ...

 Apr 17 2015 - Ice-hockey: Czech star Jaroslav Holik dies aged 72The Peninsula
(MENAFN - The Peninsula) Prague - Czech ice-hockey legend Jaroslav Holik, who led his country's under-20 team to world titles in 2000 and 2001 as a coach, has died at the age of 72, local media said ...

 Apr 17 2015 - Figure skating: World Team Trophy resultsThe Peninsula
(MENAFN - The Peninsula) Tokyo - Results from figure skating's World Team Trophy in Tokyo on Friday:Pairs short programme1. Sui Wenjing/Han Cong (CHN) 71.20 points2. Meagan Duhamel/Eric Radford (CAN) ...

 Apr 17 2015 - Qatar Exchange gains 113.62 points regional bourses bullishThe Peninsula
(MENAFN - The Peninsula) Qatar Exchange index continued its green run yesterday, gaining 113.62 points, or 0.96 percent when the bourse closed trading at 11,947.45 points. Indices of all sectors made ...

 Apr 17 2015 - Qatari stocks break 12,000 mark, up 0.3pThe Peninsula
(MENAFN - The Peninsula) Qatari stocks broke the psychological 12,000 mark in intraday trade yesterday before finishing slightly lower at 11,987, up 0.3 percent from the previous session. The ...

 Apr 17 2015 - Building raw materials to be cheaper soonThe Peninsula
(MENAFN - The Peninsula) The basic building raw materials such as gabbro and limestone in the local market are likely to become cheaper in the near future due to stiff competition among importers, ...

 Apr 17 2015 - Barwa buys Saudi residential compound in SR300m dealThe Peninsula
(MENAFN - The Peninsula) The First Investor (TFI), the investment banking division of Barwa Bank Group (BBG), announced the acquisition of a residential compound in Riyadh by Manazel Compounds Real ...

more...


 






Google

Click to Apply

 
 

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