13 Feb 2013
(MENAFN) Qatar real GDP per capita is expected to slow from 2012 onwards, as the large investment programme to boost liquid natural gas production capacity comes to an end, Arabian Business reported, citing ratings agency Standard & Poor’s (S&P).
S&P said that Qatar was one of the wealthiest economies it rated, having “high levels of economic wealth and strong fiscal and external balance”.
S&P assigned AA/stable/A-1+ rating to the country maintaining its “stable outlook”.
But the ratings agency warned that Qatar’s banking system is increasingly relying on external funding, which poses an external risk.
“In 2012, we estimate that the banking system’s net external liability position increased to USD22 billion from USD12 billion in 2011.” S&P said.
“Nevertheless, we expect Qatar’s net external asset position to continue to grow to over 100 percent of current account receipts,” S&P added.
S&P noted that Qatar still faces limited monetary flexibility and rising external balance sheet risks, in addition to still-nascent public institutions and limited disclosure, particularly with respect to government assets and their returns.
S&P said that at 2011 production levels, Qatar’s oil reserves will last around 43 years.
Qatar’s gas reserves, which are the world’s third largest, will last more than 170 years at 2011 production levels, S&P added.
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