Doha: Driven by high oil, and energy prices, global investments, and a surge in tourism during November and December due to the World Cup, recent data by global markets research group Fitch solution reveals that consumer prices are expected to bolster Qatar’s economy by 2.8 percent.
The consumer prices also forecast a steady growth by 2.4 percent year-on-year in 2023 while estimates show that this year the market rose rapidly at 5.2 percent adding that “Inflationary pressures are also subsiding, having peaked in Q2 2022”.
The data shows that the real gross domestic product (GDP) was 5. 2 percent this year and forecasts a growth of 2.8 percent in the coming year. “We note that oil prices will cool somewhat in H2 2023, down from the near-record highs seen in H1 2022,” it said.
The fluctuating growth is witnessed in line with the concluded and upcoming events in the country. Qatar’s economy is built-in with several factors including tourism, investments, trade, and the hydrocarbon industry.
One of the foremost sources in the region is oil and gas which makes the country buoyant and enables them to provide budget and fiscal policy.
According to the report by the country risk and industry research team at Fitch, the price of Brent crude oil is expected to average $100 per barrel, a steep decline from an average of $105 per barrel.
The report outlines that “This will keep revenues supported even the Q422 decision by the OPEC+ to limit oil production in 2023 will weigh modesty on export revenues.”
As Qatar hosted FIFA World Cup 2022 and decline in political tensions in the GCC, the data also forecast a strong recovery in the tourism sector in the coming years eventuating higher household spending and stronger growth in the economy.
