The mining and quarrying sector, under which the oil and gas segment falls, has shown a real growth of only 0.9% year-on-year in the second quarter of this year while non-oil’s growth was 9.1%
By Santhosh V Perumal
Business Reporter
Qatar’s economy is estimated to have grown 4.8% year-on-year (y-o-y) in the second quarter (Q2) of 2015 mainly on strong double-digit expansion, especially in construction, trade and finance sectors, indicating the effectiveness of the government’s diversification drive, according to official estimates.
The country’s real (inflation-adjusted) gross domestic product (GDP) at constant prices was up 0.5% against the first quarter levels, said the Ministry of Development Planning and Statistics (MDPS), using 2013 as the new base year.
In nominal terms (at current prices), Qatar’s GDP is estimated to have fallen 19.2% y-o-y and 4.2% quarter-on-quarter (q-o-q), it said.
The mining and quarrying sector, under which the oil and gas segment falls, has shown a real growth of only 0.9% y-o-y in Q2, 2015, while non-oil’s growth was 9.1%.
In nominal terms, mining and quarrying showed a plunge of 40.6% y-o-y and 8.8% q-o-q, even as non-mining and quarrying segment reported 4% growth y-o-y and a fall of 1.1% q-o-q.
“The reduction in international price levels of crude oil in this quarter has led to sharper decline in nominal gross value added of this (mining and quarrying) sector,” the ministry said.
Major public investments helped the real gross value added in the construction sector to report an increase of 19.7% y-o-y in Q2, 2015 but on q-o-q, it sunk 1.4%. In nominal terms, the sector grew 15.3% y-o-y but fell 2.8% q-o-q.
Trade, hotels and restaurant registered a real growth of 12.5% y-o-y in Q2, 2015 and it was flat q-o-q. In nominal terms, it grew 15% y-o-y and 0.6% q-o-q.
Finance, insurance, real estate and business services reported 10% jump y-o-y in the real gross value added in Q2 of this year but was down 0.1% q-o-q. The sector had shown 11.2% y-o-y expansion in nominal terms and it shrank 4.7% q-o-q.
The transport and communication sector is estimated to have grown 5.5% y-o-y in Q2, 2015 but reported 5.2% slide q-o-q. In nominal terms, its growth was 8.2% y-o-y; while it shrank 5.4% q-o-q.
The electricity and water segment witnessed 5.2% expansion y-o-y in Q2, 2015 and its growth was even sharper by 49.3% against the first quarter of this year. In nominal terms, the sector showed 6.9% and 40.6% rise y-o-y and q-o-q respectively.
The real gross valued added in the manufacturing sector is estimated to have expanded 3.8% y-o-y and 3.3% q-o-q in Q2, 2015. In nominal terms, the sector’s growth has witnessed a 23.3% plunge; even as it reported 2% growth q-o-q.
The real growth is primarily explained by the increase seen in the production of fertilisers and petrochemical products during Q2, while the sharp y-o-y drop in nominal terms is due to falling international prices, the ministry said.
Agriculture and fishing recorded 10.1% and 2.9% real growth y-o-y and q-o-q in Q2, 2015 and in nominal terms, it grew 9% and 1% respectively.
The government sector witnessed 6.3% and 2.4% real growth y-o-y and q-o-q in Q2 2015. In nominal terms, it showed 7.9% and 2.4% expansion y-o-y and q-o-q respectively.
Qatar tops Mena in competitiveness
Qatar has moved up two places to secure the 14th position globally even as the country tops the Mena region in the latest “Global Competitiveness Index” prepared by the World Economic Forum (WEF). “Qatar leads the Middle East and North Africa region at 14th position,” the WEF report said, adding the country’s main strength is its “stable macroeconomic environment”, which is driven by public budget surpluses and low government debt the result of high windfall revenues from energy exports. The 2015-2016 Global Competitiveness Report showed Qatar occupied the first position globally in terms of “ease of access to loans” and placed its stable macroeconomic environment in the second position, adding that businesses and individuals use latest technologies, including the Internet, widely.
