Qatar flag Qatar: Economic outline

Economic Outline

Economic Indicators

The Emirate’s economy is heavily concentrated in the gas industry, which represents two-thirds of its GDP and almost 80% of export earnings. Qatar's decade-long endeavors to diversify the economy reached fruition with the successful hosting of the 2022 FIFA World Cup. Following robust growth in 2022 (4.9% of GDP) fueled by elevated natural gas prices and the aforementioned World Cup, the Qatari economy continued to expand in 2023, albeit at a slower rate (1.6% as per the IMF latest estimates). Near-term growth normalization is anticipated, with non-hydrocarbon sectors driven by public project investments, the North Field LNG expansion project, and subsequent benefits in logistics, manufacturing, and trade. Over the medium term, growth is projected to average around 5.5%, bolstered by substantial LNG production expansion and initial reform progress from the forthcoming Third National Development Strategy (NDS3).

The central government fiscal surplus increased to approximately 10% of GDP in 2022. Substantial fiscal surpluses persisted through the third quarter of 2023, supporting a projected surplus of 7.5% of GDP for the year. At the same time, non-hydrocarbon revenues increased due to higher corporate earnings, driven by the rise in tourist arrivals. The debt-to-GDP ratio decreased marginally in 2023 (to 41.4%, from 42.4% one year earlier), and is expected to follow a downward trend over the forecast horizon, reaching 46.3% by 2025 (IMF). With the decline in global commodity prices and the normalization of domestic demand, headline inflation eased to below 3% in 2023 and is expected to remain around 2% over the medium term. The Qatar Investment Authority (QIA) holds total assets estimated to be around 200% of GDP. Its overseas investments encompass diverse sectors including sports, entertainment, media, ports, real estate, retail, and airports. This strategy enables the emirate to utilize its external surplus, enhance the country's prestige, and generate additional investment income. Banks exhibit strong capitalization, liquidity, and profitability, with a capital adequacy ratio of 19% and a return on equity of 14.6% as of Q2/2023.

Qatar is overall a politically stable, rich country (it had the fifth-highest income per capita in the world in 2022 according to the World Bank, PPP, at USD 114,648). It is estimated that 85% of the inhabitants are expatriates, whose rights are limited, despite the progress made with recent reforms. According to World Bank, unemployment is almost null, representing 0.1% of the total labour force in 2022.

Main Indicators 20222023 (E)2024 (E)2025 (E)2026 (E)
GDP (billions USD) 236.26234.22244.69251.90269.00
GDP (Constant Prices, Annual % Change)
GDP per Capita (USD) 80,57378,69681,40083,38288,598
General Government Gross Debt (in % of GDP) 42.539.437.336.135.0
Inflation Rate (%)
Current Account (billions USD) 63.1243.8738.0833.1630.98
Current Account (in % of GDP) 26.718.715.613.211.5

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

Monetary Indicators 20162017201820192020
Qatari Rial (QAR) - Average Annual Exchange Rate For 1 GBP 4.914.684.864.504.67

Source: World Bank, 2015


Return to top

Any Comment About This Content? Report It to Us.


© eexpand, All Rights Reserved.
Latest Update: May 2024