Real GDP To Accelerate By 1.8% In H2 2024, Says Fitch
Date
9/16/2024 3:02:46 AM
(MENAFN- The Peninsula)
Joel Johnson
|
The Peninsula
Doha: Qatar's Economy is poised for a significant leap in the coming months leading up to 2025.
Fitch Solutions, a global research and analytical platform recently reported that in 2024, the country's real GDP is expected to witness a boost of 1.8 percent as compared to 4.2 percent in 2022 and 1.2 percent in 2023.
Market experts have outlined that the key drivers for impacting the economy are non-oil sectors across the country.
“This is a bit less optimistic than our previous forecast of 2.2% as well as the consensus forecast of 2.1 percent; the hydrocarbon sector performed worse than we had expected in H1 2024,” the report said.
However, in the coming year, industry experts expect that the sector will further thrive by 2.2 percent, due to a pickup in hydrocarbon output in addition to a bolstered rebound in the non-oil realm sustained by easing monetary conditions and expanded government backing.
The report further highlights that albeit the real GDP saw a slowdown in real GDP growth last year, Qatar's augmentation of 1.8 percent in 2024 marks a downward revision of 2.2 percent, due to weaker-than-expected growth in 2023 and a contraction in mining activity in the first half of 2024,
It said:“We believe the weak performance in mining production reflects falling hydrocarbon output, which accounts for around 37 percent of total GDP. While we expect an improvement in the second half of 2024, the hydrocarbon sector will only grow by around 0.5 percent this year.”
Economic analysts also mentioned that high-frequency data will strengthen non-oil activities and is anticipated to rev from last year's economic growth.
“The post-2022 FIFA World Cup normalisation in economic activity resulted in a sharp slowdown in growth from 5.7 percent in 2022 to 1.1 percent in 2023. This was especially evident in sectors such as construction, wholesale and retail trade as well as transport & storage,” it added.
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