IMF concludes latest economic outlook report

06 March 2018
Overall GDP growth of 2.6 percent is forecast for 2018

The Washington-based IMF has published its latest economic review on Qatar.

In its 2018 Article IV consultation report, the Fund describes how the country is adjusting to lower hydrocarbon prices.

Doha is introducing economic structural reforms aimed at diversifying its economy and increasing private sector participation.

The reform programme has seen Doha increasing tariffs for utilities such as water and electricity, and increasing domestic fuel prices in line with  international market rates.

Reforms

The IMF says that Qatar’s financial system is sound, and that the economy has been supported by government spending on infrastructure projects to support economic diversification as well as hosting of football’s FIFA 2022 World Cup.

The Fund projects overall GDP growth of 2.6 percent for 2018, up from overall real GDP growth of 2.1 percent in 2017.

UAE growth in 2018 is forecast by the IMF to be about 4.4 per cent.

Public spending

The Fund said that Qatar's growth will be driven by ongoing public spending allied with an easing in the pace of fiscal consolidation.

The IMF warns that the ongoing diplomatic tensions between Qatar and its GCC neighbours could weigh on business confidence.

Growth for 2019–23 is forecast to average about 2.7 per cent year.

Inflation is expected to peak at 3.8 per cent in 2018 with the introduction of VAT in the second half of that year.

Inflation is then forecast to ease to 2.2 percent in the medium term.

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