Qatar’s gross domestic product (GDP) should grow 3.5 percent in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference in Doha.
“International institutions forecast greater GDP growth in 2022 in the range of 3.5 percent,” he said In his opening keynote at the Euromoney Qatar Conference, citing the rise in global oil and gas prices.
He stressed that “The economic activity in Qatar today is much stronger than it was in 2020.”
He added, “Inflation levels are relatively moderate, according to the global rates we are witnessing, noting that the current geopolitical tensions in Europe have not significantly affected inflation levels, which remained low.”
The Governor of the Qatar Central Bank (QCB) highlighted the need to continuously monitor the risks of supply chain disruptions despite the low risks associated with the Covid-19 pandemic.
He observed that the prospects are still bright, as “economic activity is improving, driven by several factors, including the domestic demand recovery, the growth of private sector credit, and preparations to host the FIFA World Cup Qatar 2022.”
Despite the challenges the global financial sector experienced lately, QCB’s Governor said that Qatari banks still enjoy a high level of capitalization and liquidity, maintaining asset quality and bank profitability, and keeping loan ratios the lowest in the region.
Fitch Ratings in April forecast Qatar’s GDP would grow 3.2 percent in 2022, from 1.6 percent in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
In Q4 of 2021, Qatar’s GDP increased by 2 percent year-on-year, driven by a growth in the non-hydrocarbon sector, despite rising oil and gas prices.
Sheikh Bandar also stated that Qatar soon plans to grant licenses to fintech companies.
