Doha: At a time when the global economy is facing a slowdown, Qatar’s economy is expected to stage a strong recovery. While the global economy is expected to slow down this year, Qatar’s economy is likely to grow strongly this year and next year, according to a recent report by the World Bank.
Qatar’s real GDP (Gross Domestic Product) is expected to grow by 4.8 percent in 2022 and 4.9 percent in 2023, as per the latest Global Economic Prospects report released by the World Bank. The economy of Qatar is estimated to have grown by 3 percent in 2021. Global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023.
Qatar is expected to outperform regional growth also as the region is likely to grow at 4.4 percent this year. Higher oil and natural gas prices and increased production are expected to benefit energy exporters.
Oil exporters are expected to reap the benefits of rising oil production and higher global oil prices, both improving revenue collection, and positive COVID-19 developments, including high vaccination rates in Gulf Cooperation Council (GCC) economies. Some economies will also benefit from record-high natural gas prices. Growth in 2022 is forecast to reach 4.4 percent in oil exporters and 4.7 percent in GCC economies before slowing in 2023.
“The regional growth forecast for 2022 has been revised up by 0.8 percentage point, to 4.4 percent, reflecting stronger near-term prospects for both oil exporters and oil importers. This would exceed the region’s average annual growth rate in the previous decade, as disruptions from the pandemic and oil production cuts wane, however, uncertainty remains high,” said the report.
The Middle East and North Africa (MENA) region experienced a strong economic recovery in the second half of 2021, bringing output back to its pre-pandemic level in some economies. Economic performance has been uneven across the region because of differences in the severity and effects of the pandemic.
Following a strong rebound in 2021, the global economy is entering a pronounced slowdown amid fresh threats from COVID-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies, said the report. Oil prices are assumed to average $74 per barrel in 2022, a 19 percent upward revision from last June, before declining to $65 per barrel in 2023 as new supply comes on stream.
The forecast for oil prices assumes that oil demand returns to its pre-pandemic level in 2022 and OPEC+ continues to implement its announced production plans.
