The International Monetary Fund expected economic growth in Qatar to accelerate this year to 3.2%, supported by the expansion of the North Field project to produce liquefied natural gas, which will contribute to strengthening the medium-term prospects.
The IMF praised the strength and effectiveness of the policy response in the State of Qatar to confront Covid-19, which helped reduce the negative impact of the pandemic and promote the recovery process. The report indicated that the reason for the economic recovery was supported by the recovery in domestic demand, the rise in hydrocarbon prices, and the preparation for hosting the FIFA World Cup Qatar 2022. It noted that the banking sector remains liquid and well capitalized, with relatively low levels of non-performing loans.
According to the report, Qatar has made commendable progress in improving structural reforms during the pandemic, it was the first country among the Arab Gulf states to abolish the sponsorship system with the stipulation of a minimum wage and allowances for food and housing, as well as implementing several reforms in order to increase foreign and private investment, improve productivity and competitiveness. The IMF expects the momentum of strong reforms to improve productivity and inclusiveness, as well as enhance the business environment to continue, also attracting foreign investment and adopting new global trends, such as digitalization and green growth, with the aim of achieving stronger and more diversified growth in the long term.
Source (Al-Raya Qatari Newspaper, Edited)
