(MENAFN- Gulf Times)
By Santhosh V Perumal
Business Reporter
Qatar’s inflation-adjusted (real) economy is estimated to have grown 6% year-on-year (y-o-y) in the third quarter (Q3) of this year mainly powered by the non-hydrocarbon segment particularly construction and trade.
The hydrocarbon sector however witnessed almost 3% decline y-o-y in Q3 2014 said the Ministry of Development Planning and Statistics releasing the preliminary estimates of gross domestic product (GDP) at current and constant prices for Q3 2014.
The sector saw a 4.3% decline y-o-y in nominal growth on receding crude oil production and some maintenance shutdowns in gas plants the ministry said. The decline in international price levels of crude oil and gases in this quarter also led to a sharper decline in nominal gross value addition of this sector the ministry added.
The ministry in its recent Qatar Economic Outlook 2014-16 Update had forecast the real economic growth to be 6.3% for the whole of 2014. While flat gas production and receding oil output are seen checking overall expansion in 2014 the commissioning of production from the Barzan project in 2015 is set to support higher economic growth in 2015–2016 it said.
The non-hydrocarbon segment witnessed a robust 12% expansion y-o-y in Q3 2014 driven by electricity construction trading transport and communication sectors. The 7% jump in the country’s population in Q3 2014 is another factor in contributing such a growth the report said adding the sector had grown 13.9% in nominal terms.
The manufacturing sector reported a 7.3% growth y-o-y on the back of higher volumes of production of petrochemicals fertilisers basic iron and steel products and other non-metallic mineral products. The sector had seen 9% rise in nominal terms.
Major public investments especially in the infrastructure related projects continue to impact the growth in the construction sector which registered a robust 18.5% growth in Q3 2014.
The trade hotel and restaurant sector witnessed 13.7% growth in Q3 2014 steered by high trading and hospitality activities seen during Ramadan a seasonal phenomenon. Rising population is another factor of high growth. The growth was 14.6% in nominal terms.
The transport and communications segment grew 10.5% and 12.6% in real and nominal terms respectively in Q3 2014. The electricity and water group registered 10.7% and 9.2% growth in real and nominal terms respectively in Q3 2014.
The finance insurance real estate and business services sector showed a 13.7% growth in real terms and 19.9% in nominal terms in the review period; while the government services witnessed 8.7% and 9% expansion in real and nominal terms.
Import duties witnessed 5.2% and 1.9% y-o-y in real and nominal terms respectively in Q3 of this year.
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