The Qatari Central Bank expected that the Qatari economy will contract this year due to weak oil prices and the Coronavirus crisis, after it fell 0.3 percent last year. The report shows that the initial analysis of the central bank indicates that if these unfavorable conditions continue for an extended period, the real GDP growth will remain negative in 2020.
The report showed real GDP contraction in 2019 by 0.3%, mainly due to a slowdown in the oil and gas sector.
Qatar raised $10 billion through the process of issuing three-tier bonds in May, to cope with the burden of Corona, and the decline in oil and gas prices, as it launched five-year bonds worth two billion dollars at 300 basis points over US Treasury bonds, and ten-year bonds worth $3 billion at 305 basis points above the same amount and 30-year bonds worth $5 billion at 4.4%.
Last June, the Qatari government requested the government-funded institutions to reduce their spending on non-Qatari employees' wages by 30 percent, starting from July 1, either by reducing salaries or laying off workers with a two-month notice.
Source (Al-Arabiya.net, Edited)
