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Analysis Show That Qatar Can Overtake Blockading States Despite Crisis

Photo: The Peninsula

According to the analysis, the economy of Qatar is expected to grow faster than that of Saudi Arabia and UAE in 2018, in spite of the crisis.

Qatar growth is forecast to slightly trimmed to 2.5 percent for the current year in the Bloomberg’s latest survey, compared with 3.1 percent in the previous survey conducted in June. However, the outlook of 2018 remains same from the June survey standing at 3.2 percent.

Though, Qatar is experiencing the slowest growth in two decades, it is still estimated to expand the most among GCC nations.

Analysts believe that Qatar will eventually adapt to the blockade and continue to grow in long-term. Higher growth rate in 2018 is independent of whether the boycott on Qatar is lifted or not, said both Jackson at Capital Economics and Farouk Soussa, London-based chief economist for the Middle East at Citigroup Inc.

“We expect the disruptive impact of the boycott to have evaporated by next year,” Soussa said. “Trade routes will have been fully reconfigured, confidence will have been restored, building will recommence — all possibly against a backdrop of a continued boycott, but one that the economy has adapted to.”

In its latest macroeconomic outlook for Qatar, NBK noted the country’s growth is expected to pick up to 2.5 percent in 2017 from 2.2 percent in 2016 on higher oil and gas output and further expansion in the construction, financial services and transportation sectors.

The $200bn public infrastructure program of government which comes under Vision 2030 diversification strategy and FIFA World Cup 2022 plan, will contribute to growth in this sector.

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