Qatar's Economy Expected to Develop at Quickest Rate

Oil exporters are progressively resuming pre-pandemic output levels, while the gap between oil importers and exporters is projected to widen.

According to the World Bank, Qatar's economy is expected to rise this year, with the country becoming the fastest-growing economy in the Gulf Cooperation Council (GCC) in 2023 and 2024.

According to the World Bank's latest Global Economic Prospects report for June, the country's real Gross Domestic Product (GDP) is predicted to grow by 4.9 percent this year, followed by 4.5 percent growth in 2023 and 4.4 percent growth in 2024.

Qatar's GDP is growing thanks to a 10% increase in hydrocarbon exports and the multibillion-dollar North Field expansion project, the world's largest of its kind, which aims to increase Qatar's annual liquefied natural gas production capacity from 77 million metric tonnes to 126 million tonnes by 2027.

Qatar's GDP is expected to grow at a rate of 4.9 percent in 2022, according to the World Bank, against a global GDP growth rate of 2.9 percent.

Qatar's GDP will grow at the quickest rate in the GCC in the years 2023 and 2024.

According to the World Bank, Qatar's GDP will expand by 4.9 percent in 2023, while Saudi Arabia's will grow by 3.8 percent, Kuwait's will grow by 3.6 percent, Oman's will grow by 2.8 percent, the United Arab Emirates will grow by 3.4 percent, and Bahrain will grow by 3.1 percent.

Qatar's GDP is expected to rise by 4.4 percent in 2024, while Saudi Arabia's is expected to grow by 3.0 percent, Kuwait's by 2.5 percent, Oman's by 2.6 percent, the United Arab Emirates by 3.6 percent, and Bahrain's by 3.1 percent.

The Middle East and North Africa (MENA) region's output is predicted to grow by 5.3 percent in 2022, up 0.9 percent from the previous January prediction, thanks in part to higher oil prices, which means higher oil income, as well as improving prospects among the GCC economies.

This would be the fastest expansion in a decade for the region.

However, if it hadn't been for the "detrimental" impact of Moscow's invasion of Ukraine on global oil importers, the rebound would have been more robust.

Global energy instability and rising commodity prices as a result of the Covid-19 pandemic-induced slowdown, followed by Russia's invasion of Ukraine, slowed global GDP significantly. The influence on the region, however, is mixed.

Despite a partial influence from Omicron outbreaks and net losses to international oil importers owing to the invasion of Kyiv, economic activity in the MENA region has remained strong, according to the report. Increased oil revenues and recovering non-oil sectors boost oil exporters.

The Russian-Ukrainian War's unanticipated economic implications on the rest of the world have had a 'good' impact on Qatar's economy.

According to the report, activity in the Middle East and North Africa (MENA) is expected to gradually slow through 2024, with growth returning to 3.2 percent, as services activity (activities required for the production and/or delivery of specific products and/or services) stabilizes and policy support is withdrawn.