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FINANCIAL NEWS
Qatar’s fiscal balance dives in deficit of USD5b in Q1
01 Sep 2015
(MENAFN) Data showed that Qatar’s fiscal balance dived into a deficit of USD5 billion in the first quarter of 2015, while the country’s external surplus narrowed to 12.8 percent of GDP on lower oil prices.
While the contribution of exports to GDP has declined over the last year, that of consumption and investments has increased. Oil output has been declining due to maturing oil fields.
Qatari authorities remain committed to their strategic projects despite the shelving of 2 petrochemical projects in 2014. Nevertheless, business optimism was affected in the second quarter by low oil prices.
Qatar’s headline inflation rose to 1.6 percent in July after housing costs began to rise. Qatar’s population dropped to 2.1 million in July due to the travel season, but annual growth was still above 10 percent.
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