Stable macroeconomy is Qatar''s strength: WEF

(MENAFN- The Peninsula)

DOHA: Stable macroeconomic environment driven by public budget surpluses and low government debt is Qatar’s main strength cited World Economic Forum’s (WEF) latest Global Competitiveness Index that put Qatar on top of Mena region yesterday.

The report is an annual assessment of the factors driving productivity and prosperity in 140 countries.

Qatar’s main strength is its stable macroeconomic environment ….the result of high windfall revenues from energy exports. However the recent decline in the price of oil and gas is not captured in this year’s edition because of the time lag in the data. It may undermine the country’s performance in future the WEF said.

According to the global report Qatar’s additional strengths include high efficiency in goods and services markets and a very high level of physical security. Access to finance is world class and businesses and individuals use latest technologies including the Internet widely.

To maintain its strong position Qatar will have to invest its exceptional wealth in the types of innovation and transfer of technology and know-how that can translate into future economic growth. Currently government procurement plays a key role in promoting innovation yet the patenting rate of Qatari nationals remains low. With imports standing at 30.77 percent of GDP promoting inward trade and investment could contribute to bringing in new technologies and know-how and enhancing a culture of innovation.

Qatar that lies between the scale of One and Seven has been adjudged in all the 12 Pillars as “best”. It has been ranked “2” under the macroeconomic environment pillar with a 6.7 score.. Infrastructure health and primary education higher education goods market efficiency labour market financial market development technological readiness market size and business sophistication are among other Pillars that Qatar being adjudged as”best”.

It’s a mixed picture in the Mena. Qatar (14th) leads the region ahead of the UAE (17th) although it remains more at risk than its neighbour to continued low energy prices as its economy is less diversified. These strong performances contrast starkly with countries in North Africa where the highest placed country is Morocco (72nd) and the Levant which is led by Jordan (64th).

With geopolitical conflict and terrorism threatening to take an even bigger toll countries in the region must focus on reforming the business environment and strengthening the private sector. This year’s edition found a correlation between highly competitive countries and those that have either withstood the global economic crisis or made a swift recovery from it. The failure particularly by emerging markets to improve competitiveness since the recession suggests future shocks to the global economy could have deep and protracted consequences.

Switzerland tops the Global Competitiveness Index for the seventh year in a row. It leads the world in its capacity to innovate and scores highly for its education system and labour market efficiency. Switzerland’s infrastructure is strong its public institutions are effective and transparent and its macroeconomic environment is more stable than most. Still the cost of doing business in Switzerland is high.

The Peninsula