In addition to its crucial role in the global gas market, which improves prospects for local economic growth, the Arab Monetary Fund (AMF) anticipates that Qatar’s economy will grow by 4.4% this year and 3.6% in 2023. These projections are supported by the boom in activities associated with the country’s hosting of the FIFA World Cup Qatar 2022 as well as the growth of non-hydrocarbon activities.
In a research issued yesterday, the fund predicted that inflation in Qatar will peak at roughly 4.3% this year and then drop to 3.5% the next year.
Due to a number of factors that support growth in both the oil and non-oil sectors, the positive effects of the implemented economic reforms, as well as the continued adoption of stimulus packages supportive of recovery from the Covid-19 pandemic, the AMF anticipates that the Gulf Co-operation Council countries will experience a relatively higher growth rate this year, at about 6.3%, compared to 3.1% last year.
According to the AMF, it is predicted that by 2023, the group of countries’ growth rate will drop to 3.7%.
According to the analysis, the growth rate of the Arab economies will be roughly 5.4% in 2022 as opposed to 3.5% in 2021.
In addition to the positive effects of implementing numerous economic reforms and strategies aimed at enhancing the levels of economic diversification, reforming business environments, and encouraging the role of the private sector, the expansion will be primarily driven by an increase in global demand levels, high growth rates in the oil and gas sectors, the continuation of Arab governments’ stimulus packages to support economic recovery with a value exceeding $400bn during the period (2020-2022), and the continuation of the Arab Union’s structural reforms.
The rate of economic growth for Arab countries would likely reduce to about 4% in 2023, in accordance with the predicted decline in commodity prices and the slowing of global economic growth.
The AMF provided evidence of the effects of international expansionary fiscal and monetary policies that support the side of aggregate demand.
