Qatar’s inflation is expected to gradually accelerate on the back of strengthening economic activity, FocusEconomics has said in a report. Its consensus forecast panellists expect inflation to average 2.7% in 2017 and 3.1% in 2018.
According to FocusEconomics, Qatar’s economy closed 2016 on a mixed note. The economic growth for the year likely decelerated to the lowest level in two decades, weighed down by the effects of the oil price downturn. However, the government has made laudable efforts to attempt to compensate for the shortfall in oil-related revenues while sparing major infrastructure investments related to the 2022 World Cup and the Vision 2030 development plan, the cornerstones of Qatar’s non-hydrocarbon growth. Although the government is expected to roll out additional fiscal consolidation measures this year, the country will benefit from a more benign oil price environment, an increase in infrastructure outlays and a pick-up in business activity.
Qatar’s non-oil growth will accelerate this year on the back of strong public infrastructure spending and an expanding population, which is lifting domestic demand.
The hydrocarbon sector is also expected to contribute to growth this year on the back of higher oil prices and the eventual opening of the Barzan gas production facility.
FocusEconomics panellists see the economy growing 3.3% in 2017. For 2018, the panel foresees growth of 3.6%.
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