Arab News, Thurs, Nov 23, 2023 | Jumada I 9, 1445
Qatar’s economic growth stabilizes after FIFA
World Cup boom
The economic growth of Qatar has normalized after the country’s strong fiscal
performance in 2022, driven by the FIFA World Cup, according to the
International Monetary Fund.
In its consultation report released on Nov. 21, the IMF disclosed that Qatar’s
economic outlook in the medium term seems favorable, with output expected to
expand by about 1.75 percent per annum during 2023–25.
It further revealed that the medium-term expansion would be fueled by the
nonhydrocarbon sector, which is expected to grow at 2.75 percent, driven by
“Qatar’s economic growth has normalized in 2023 following the World Cup-driven
boom. Medium-term growth is set to increase to around 5 percent per annum
supported by LNG production expansion,” said IMF in the report.
The report added that the country’s reform to achieve its National Vision 2030,
which aims to ensure sustainable development by the end of this decade and is
guided by the Third National Development Strategy, will also start to bear
The IMF added that inflation in Qatar will likely moderate to 2 percent this
year, while fiscal and current accounts are projected to remain in surpluses
over the medium term.
Qatar’s Planning and Statistics Authority also revealed on Nov. 15 that higher
expenses toward communication, recreation and food led the country’s inflation
to rise 2.52 percent in October on an annual basis.
Additionally, the IMF report said that inflation has moderated following
monetary policy tightening in tandem with the US Federal Reserve, consistent
with the currency peg to the US dollar.
“Broad fiscal discipline amid sizeable hydrocarbon windfalls in 2022–23 has
strengthened fiscal position significantly and is commendable. Continued fiscal
prudence is expected under the upcoming 2024 budget,” added the IMF.
According to the IMF, the Qatar Central Bank has successfully maintained price
and financial stability.
Moreover, the banks in Qatar remain healthy, although the non-performing loan
ratio has increased as pandemic-related restructured loans turned
“The QCB has refined macroprudential measures to reduce further risks associated
with banks’ external asset-liability mismatches, especially those of short
maturities, which is welcome,” noted the IMF.
The agency also pointed out that continued diligence is critical to
strengthening the banking sector in a “higher-for-longer” interest rate