Quotes: US 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.

 






  MENA News Headlines
 Aug 1 2014 - India hires masked monkey men to combat macaque menaceKhaleej Times
(MENAFN - Khaleej Times) E very talented group of men has taken to wearing monkey masks imitating their whoops and barks and hiding behind trees to ward off the aggressive animals.India has hired a ...

 Aug 1 2014 - Isolated indigenous make contact with outside world in BrazilKhaleej Times
(MENAFN - Khaleej Times) Azilian experts said the indigenous people likely crossed the border from Peru facing pressure from illegal logging and drug trafficking at home.Isolated native people ...

 Aug 1 2014 - Hopes dim for India landslide survivorsKhaleej Times
(MENAFN - Khaleej Times) Out 160 people were thought to have been living in the dozens of damaged houses.Women mourn a victim of the landslide in Malin village of Pune district in western Maharashtra ...

 Aug 1 2014 - Indian nurses stuck in Libya to be shifted from todayKhaleej Times
(MENAFN - Khaleej Times) Acuation of Indians from the strife-torn Libya will begin on Friday with the first batch of 36 nurses from the southern state of Kerala moving to Tunisia in the morning on ...

 Aug 1 2014 - General Suhag takes over as the new India army chiefKhaleej Times
(MENAFN - Khaleej Times) Neral Dalbir Singh Suhag on Thursday took over as the new chief of the 1.General Suhag assumed charge after his predecessor handed over to him the Chief of Army Staff baton ...

 Aug 1 2014 - European Union formally adopts Russia sanctionsKhaleej Times
(MENAFN - Khaleej Times) E new measures finally agreed earlier this week after months of hesitation target Russias banking defence and energy sectors.The European Union formally adopted broad ...

 Aug 1 2014 - Train hits bus with bridal party in Bangladesh 10 killedKhaleej Times
(MENAFN - Khaleej Times) Lice said the accident occurred at an unguarded railway crossing allowing cars and buses to move freely across the track during the early hours of Friday.A train smashed into ...

 Aug 1 2014 - Gas blasts kill 24 injure 271 in TaiwanKhaleej Times
(MENAFN - Khaleej Times) E explosions believed to have been triggered by gas leaking from underground pipelines were powerful enough to upturn cars and tear open paved roads.Vehicles are left lying ...

 Aug 1 2014 - Friends CC GM score easy victories to enter Al Faraa T20 semisKhaleej Times
(MENAFN - Khaleej Times) The quarter-final matches Friends CC defeated Emistate by four wickets while GM CC coasted to a six-wicket victory over X Eleven.Friends CC defeated Emistate. — ...

 Aug 1 2014 - Romelu Lukaku lost focus as was not first choice says MourinhoKhaleej Times
(MENAFN - Khaleej Times) Joined Chelsea from Anderlecht for 18 million in 2011 but failed to make an impact at Stamford Bridge and spent the 2012-13 season on loan at West Bromwich Albion.Jose ...

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help