According to the latest report from the International Monetary Fund (IMF), the Qatar economy is expected to continue normalizing in the near term after receiving a boost in 2022 from hosting the World Cup. The IMF forecasts a GDP growth rate of 1.9 percent for Qatar in 2024 and states that the country has shown resilience to recent global shocks, with a favorable economic outlook. The report also highlights that the conflict in the Middle East has not had a visible impact on Qatar.
Read more: Qatar’s economy grows 2.5 percent in first quarter
LNG expansion driving growth
In the medium term, Qatar, known as one of the world’s leading exporters of liquefied natural gas (LNG), is projected to experience an average growth rate of 5.5 percent. This growth will be driven by significant expansion in LNG production and the implementation of fiscal and other reforms. Also, the IMF concludes its Article IV consultation by stating that the risks are broadly balanced. It recommends maintaining prudent macroeconomic policies and intensifying reform efforts to enhance Qatar’s resilience to shocks and accelerate its economic transformation.
Additionally, the IMF suggests several measures to achieve these goals, including the adoption of a value-added tax (VAT), reforms to stimulate private sector growth and labor market expansion, the gradual reduction of subsidies, and the decrease of the wage bill.
Furthermore, in an effort to diversify its economy, Qatar is actively working towards expanding its economic sectors. By 2024, the country is expected to witness a rebound in its GDP growth, with a forecasted rate of 2.7 percent.
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