QCB Governor Highlights Economic Resilience Amid Global Uncertainty

Doha, Qatar: Amid rising global economic headwinds, the Governor of the Qatar Central Bank (QCB), H E Sheikh Bandar bin Mohammed bin Saoud Al-Thani, emphasised Qatar's resilience and readiness to navigate external pressures, particularly those stemming from tariffs and geopolitical tensions.

During a panel discussion at the Qatar Economic Forum yesterday, Governor Sheikh Bandar clarified that the direct impact of recent global tariffs on Qatar's economy remains limited.“Our exports to the United States account for less than 2 percent, so even with the imposition of a 10 percent minimum tariff, the direct effect on Qatar is minimal,” he stated. However, he cautioned about indirect effects, particularly the impact of declining global energy prices.“The main concern lies in how falling energy prices could affect our fiscal budget and current account. But we are well-positioned,” he noted.“We have already executed a robust and ambitious economic diversification plan. Qatar, and the wider GCC, have developed strong sovereign wealth funds capable of supporting the economy if needed.”

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He stressed that, under current oil price levels, Qatar remains in a stable and secure fiscal position.“We are in a good stage, but if prices drop significantly below current levels, that would warrant concern,” Sheikh Bandar said.

Highlighting the country's long-term vision, the Governor reinforced Qatar's commitment to reducing its reliance on hydrocarbon revenues. He said,“We've made significant progress in diversifying our economy, and that execution has positioned us well amid global uncertainties. Our economic strategy is not only ambitious but also already yielding tangible results.”

Beyond Qatar, Sheikh Bandar offered a sobering assessment of the global economic landscape.“The global economy is clearly in a slowing down mode,” he said, attributing this to a mix of geopolitical tensions, demographic shifts, environmental challenges, and the renewed imposition of tariffs.” He also pointed to recent market behavior as evidence of instability.

“We've seen significant volatility in financial and stock markets driven by increased uncertainty. Unless we achieve more stable economic and environmental conditions, this volatility is likely to continue,” the Governor said. While he expressed confidence in the stability of regulated financial institutions, the Governor also voiced concerns over the risks posed by non-bank financial institutions.“These entities represent a potential source of financial instability that warrants closer monitoring,” he said. Inflation, which had shown improvement over the past two years, has re-emerged as a concern.“Recent tariff developments have brought inflation back to the forefront,” Sheikh Bandar said.“But it's not only tariffs - geopolitical factors are also driving inflationary pressures.”

Sheikh Bandar also underscored that while the global economy is decelerating, the immediate risk of a recession appears low.

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