A report from the Qatar National Bank states that the non-hydrocarbon sector in Qatar continues to drive economic growth, supporting the diversification of the economy. Real GDP growth accelerated to 5.7% in Q2 2014, from a revised 5.4% in the previous quarter, according to figures released last Tuesday by the Ministry of Development Planning and Statistics (MDPS).
Rapid growth in the non-hydrocarbon sector (11.3%) was spurred by large investments in major infrastructure projects and by the fast growing population. On the other hand, the hydrocarbon sector declined 2.2% year-on-year as a result of lower crude oil production and temporary gas production shutdowns.
Looking ahead, with strong growth, moderate inflation and high current account surpluses, Qatar’s economic momentum is expected to accelerate further. Large scale infrastructure spending and population growth is expected to drive the expansion in construction, manufacturing and transportation. Strong population growth is also likely to lead to higher aggregate demand for housing, financial, retail and social services. Overall, this growth momentum is leading to a more diversified economy and one of the fastest growing non-hydrocarbon sectors in the world.