Qatar is expected to return to economic growth in 2021 due to its robust economic reforms and the continued increase in demand for oil and gas as countries emerge from the pandemic and economies re-open. These factors have led to an improvement in the recovery of the Qatar Stock Exchange which has crossed the 10,000 point mark and closed almost 2% up year-to-date.
The growth of new businesses or projects has been another contributing factor and analysts are projecting 2.5% growth for Qatar’s economy in 2021 compared to 4.5% expected contraction this year.
In addition, Qatar’s non-energy private sector seems to be set to end 2020 favourably according to the data in November Purchasing Managers’ Index (PMI). The output rose at the fastest rate since August 2020 and employment rates were the highest since January 2019. It marks a return to pre-pandemic levels amid strong performances in the manufacturing and construction as well as wholesale and retail.
The PMI indices are compiled from a survey of 400 companies in the private sector of the State of Qatar and covers the manufacturing, construction, wholesale, retail and services sectors.
The PMI rose to 52.5 in November from 51.5 in October. It reflects the improvement in operating conditions in the non-energy private sector.
Qatar`s manufacturing output is primarily exported to East Asia, where the effects of the pandemic have been milder than in the West.
The recovery has been promoted by the initiatives of the Qatar Central Bank which have included the guarantees for the banks in the country and the national guarantee programme to support the private sector.