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FINANCIAL NEWS
Qatari economy not affected by fall in oil prices
12 Nov 2014
(MENAFN) Qatar’s government said that the state’s economy would not be affected by the continuous fall in oil prices, since the country’s budget was based on a very conservative estimate of the price of fuel, Arab News reported.
Qatar’s economy, which is currently growing at a rate of about 6 percent, is heavily dependent on state spending which is mostly funded by the country’s gas exports.
However, the budget which was set by the government states that the country is planning to increase its spending by 3.7 percent to reach USD60 billion during the 2014/15 fiscal year ending next March.
The new budget, which assumed an average oil price of USD65 a barrel during the year despite it now being sold for USD82, is a strong indication that the country’s economy is still not at risk with these current prices of oil.
“Waste and extravagance and mishandling of state funds, and lack of respect for the budget, and relying on the availability of money to cover up mistakes, are behaviors that must be eradicated whether oil prices are high or low,” Qatar’s Emir was quoted saying.
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