The EconomistIntelligent Unit of the Economist Group said that the Qatari economy will return to positive growth as of the current year 2021, with estimates of about 1.8% on the back of the economic benefits of the recovery in Chinese and global demand for liquefied natural gas, as well as the developments resulting from reconciliation Gulf. According to the economic unit, Qatar’s ability to fully service its debt obligations remains strong, backed by ample foreign reserves and QIA assets. The economic unit assigned the risk rating of the banking sector a “BB”, and said that the sector is supported by a strong regulatory framework, capital indicators and comfortable liquidity. The unit stated that the ratio of bad loans as a percentage of total loans was “very low”.
The economic unit said a strong currency system was able to overcome short-term economic shocks. The country’s currency risk is also rated B; This is supported by the riyal’s peg to the US dollar, good foreign reserves, and Qatar Investment Authority assets. And in a previous update, the Economic Unit indicated that Qatar’s real economic growth will “remain stable” for most of the long-term forecast period. Investment projects in economic diversification will also maintain strong growth until 2030. There is still a possibility of high growth bursts in the event of more gas export projects, other than those that were planned in the mid-2020s, as well as providing diversification and expansion in the services sector. , Backed by state hydrocarbon reserves, opportunities for growth.
The data of the Economist unit is largely consistent with the expectations of the International Monetary Fund, as the fund is expanding the real GDP to reach 2.7% in Qatar in 2021, supported by the increase in gas production, the recovery of domestic demand, the speed of provision of Corona virus vaccines and the end of the pandemic. At the conclusion of virtual meetings recently held by IMF experts led by Mrs. Mercedes Vera Martin, he praised the latest economic and financial developments and the expected prospects for the rapid measures taken by the State of Qatar to limit the spread of the Coronavirus and mitigate its repercussions on the local economy.
The International Monetary Fund said that the local authorities’ immediate response to the virus at the policy level has led to the mitigation of the economic effects of the shocks, noting the effectiveness of the approval of a package of financial and economic stimulus measures worth 75 billion Qatari riyals to support the economy. The IMF also noted that the Qatar Central Bank provided a window for buybacks with zero interest, amounting to 50 billion Qatari riyals, which provided abundant liquidity in the banking system, which – coupled with the central bank’s reduction of basic interest rates – strengthened credit available to the private sector. The International Monetary Fund also pointed to the importance of the credit guarantee program – with a total value of 5 billion Qatari riyals – managed by Qatar Development Bank – stressing the role of the program in providing direct support to small and medium enterprises and protecting jobs.
The Fund also noted the opportunity for the family and business sectors to postpone the repayment of loan installments due until the end of the year, as well as to benefit from exemption from rental and public utility fees. He said: These measures, which aim to secure the payment of salaries or basic allowances or both for workers and reduce customs duties on vital supplies, amounted to a total of 2.1 billion Qatari riyals, which have contributed to preserving confidence in the economy and easing shocks in the business sectors. And continue to respond to healthcare needs. The Fund indicated that the speed of response in implementing the containment measures helped limit the impact of the Covid-19 pandemic on public health.