Qatar’s non-oil sector maintains performance, expands by 8.5% in Q2

Qatar’s non-oil sector maintains performance, expands by 8.5% in Q2

Driven by the industry and services sectors, Qatar’s non-oil sector maintained its performance and expanded by about 8.5% in the second quarter of the year, Samba Financial Group has said in a report.

Construction activity has continued to revive with the sector growing by 10% in the second quarter, Samba said. The construction sector is expected to remain a strong driver of the economy as infrastructure investment picks up. However, Samba estimates a lower growth in Qatar’s oil and gas sector with maintenance on older oil fields adversely affecting oil production. Second quarter growth in the sector is reported at just 0.8%, due to which Samba revised down its overall real GDP projection for 2012 to 5% with further adjustments to its 2013-14 forecast.

 

According to Samba, inflation is picking up in Qatar. A steady month-on- month increase in the heavily weighted rental component in the consumer price index since June has led to a sharp pick up in the overall inflation rate to 2.6% year-on-year in September. “This is a significant turn around and is thought to reflect increased real estate demand from an expanding work force coming to Qatar to help implement its national development plan involving large infrastructure investments and increased economic diversification. “With non-oil and gas economic activity picking up speed, inflationary pressures are likely to be sustained next year and we maintain our 4% forecast,” Samba said.
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