Growth was likely modest in the second quarter after a rebound in the energy sector propelled a slight acceleration in the first quarter. The non-energy sector seems to have lost momentum in Q2, with the non-oil private sector PMI slipping throughout the period.
This was despite healthy annual credit growth; higher tourist arrivals, thanks to government initiatives; and a pick-up in building permits in the period, which bodes well for construction activity.
Furthermore, the energy sector appeared subdued, as suggested by limp mining and quarrying activity in the quarter. Turning to the third quarter, the data looks no more promising: In July, merchandise exports were down significantly, while the PMI plunged to a fresh all-time low.
The economy is still seen gaining steam this year despite a seemingly weak H1, driven mainly by elevated public spending and a recovery in the energy sector. However, the non-energy sector will likely soften, due to moderating growth in the construction sector.
The Gross Domestic Product per capita in Qatar was last recorded at 112531.50 US dollars in 2018 when adjusted by purchasing power parity (PPP). The GDP per Capita, in Qatar, when adjusted by Purchasing Power Parity is equivalent to 633 percent of the world’s average.
GDP per capita PPP in Qatar averaged 114773.39 USD from 2000 until 2018, reaching an all-time high of 124024.60 USD in 2011 and a record low of 108287.20 USD in 2000.
Qatar’s economy contracted by 1.4% in the second quarter from a year earlier, according to government statistics, hurt by a drop in the manufacturing and construction sectors.
Gross domestic product (GDP) also contracted by 0.9% in the second quarter compared to the first, based on constant prices, the data showed.
Volatile energy prices and geopolitical tensions remain downside risks to the outlook. FocusEconomics panelists see the growth of 2.2% in 2019, which is down 0.1 percentage points from last month’s estimate, and 2.5% in 2020.
The manufacturing sector declined 7.4%, while construction fell 3.5%, data from Qatar’s Planning and Statistics Authority showed.
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