Doha: Qatar Chamber has issued its monthly economic newsletter for May which highlighted the most prominent trends in the Qatari economy, as well as statistics related to foreign trade and trade of private sector in March 2021 according to certificates of origin issued by the Chamber.
The newsletter, prepared by QCs Research & Studies Department, highlighted a report about exports of the private sector in March and during the first quarter of 2021.
The newsletter said data of the State’s foreign trade and private sector’s exports whether on a monthly or quarterly basis showed promising results, indicating that the Qatari economy has witnessed a remarkable recovery from the negative impacts of Covid-19 pandemic which has spread throughout the world and prompted most countries to impose strict preventive measures including partial or entire closure.
It also noted that the Covid-19 crisis reached its peak in April 2020 and world countries started to have put in place some precautionary measures, pointing out that then some economies began to cope with the pandemic measures and ease restrictions to avoid risks of the long-term closure on their economies and communities.
The newsletter also said that the State of Qatar, like other countries of the world, has implemented strict preventive measures against the pandemic to protect the society and economy since April 2020. Measures implemented to contain the spread of the virus included full closure except for some activities important for people's life and safety and restrictions on travel and trade except for some necessities.
It pointed out that because of these restrictions, the State’s foreign trade had been impacted due to these measures.
In April 2020, private sector exports reached QR 572 million, showing a decrease of 61 percent compared to QR 1.943 billion in March 2020. This means that the activity - according to this indicator - has lost about two-thirds of its value within one month.
However, the State’s intervention through a program to mitigate the effects of the pandemic on the economy through direct and indirect support and a program of measures to combat the pandemic and contain its spread in society has led to a gradual recovery for the economy.
In March 2021, the economic status reached to its pre-pandemic levels, where the private sector exports exceeded QR 1.938 billion.
The newsletter also referred to the State’s foreign trade which saw a considerable growth of 61 percent in March 2021 which amounted to QR 31 billion compared to April 2020.
Foreign Trade
The QC newsletter said that according to the figures given by The Planning and Statistics Authority for March 2021, the total value of foreign merchandise trade amounted to QR 31 billion, showing an increase of 10.7 % compared to QR 28 billion in February 2021.
In March 2021, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QR 22.1 billion, showing an increase of 7.3 percent compared to QR 20.6 billion in February.
The imports of goods in March 2021 amounted to around QR 8.9 billion, an increase of 20.3 percent compared to QR 7.4 billion in February.
Therefore, the country’s foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR 13.2 billion.
In March 2021, China was at the top of the countries of destination of Qatar’s foreign trade with about QR 3.9 billion, a share of 12.5 percent of the state’s total foreign trade.
Private Sector Exports
The volume of the private sector exports in March 2021 reached QR 1.938.4 billion, showing a month-on-month increase of 17.9 percent compared to QR 1.644.5 billion in February, while on a year-on-year basis, it decreased by 0.3 percent compared to QR 1.954 billion as in March 2020.
This increase demonstrated its ability and Qatar economy in general to overcome the repercussions of the Covid-19 pandemic and returning to pre-pandemic levels.
In March, private sector exports grew by 238 percent compared to April 2020, while it decreased by 0.7 percent compared to February 2020, which is the highest month during this period.
Certificates of Origin
The increase in private sector exports in March compared to February 2021 is attributed to the increase of exports through most of all certificate models except for exports through the General Model certificate which decreased by 6.9 percent compared to February.
Exports through Unified GCC model, GCC to Singapore and Unified Arab model increased on a month-on-month basis by 105.6 percent, 62.3 percent, and 31.7 percent, respectively.
Type of commodities
The newsletter said that according to the type of commodities in March 2021, the private sector’s exports of essential and industrial oils topped the list of exports which increased by 92 percent compared to February, followed by lutreine which increased by 25.9 percent, chemical substances with a 13.2 percent increase and industrial gases exports which grew by 5.5 percent.
On the other hand, exports of other commodities such as chemical fertilizers, petrochemicals, paraffin, steel, and aluminium decreased by 100 percent, 76.7 percent, and 49.5 percent, 39.5 percent, and 4.7 percent, respectively.
Private Sector Partners
As for economic blocs and groupings, Asian countries were at the top of economic blocs that received exports of private sector amounted to QR 815 million with a share of 42 percent of the total value, followed by GCC states with a share of 37.7 percent with exports of QR 730 million.
In third place came the group of EU states, with exports totalling QR 280 million representing 14.4 percent of the total value, followed by Arab countries excluding GCC states that received 79 million, a share of 4.1 percent.
The group of African Countries (excluding Arab countries) came in the fifth place with exports amounted to QR 13 million, a share of 1 percent, followed by USA with exports amounted to 20 million, a share of 0.7 percent, Other European Countries which received exports of QR0.8mn or a share of 0.04 percent.
In March 2021, Oman was at the top of the countries of destination of private sector’s exports with close to QR 582 million, a share of 30 percent of the total exports.
It is followed by India with almost QR 321 million and a share of 16.5 percent and Hong Kong with about QR 233 million, a share of 12 percent.
Netherlands came in fourth place with almost QR 180 million, a share of 9.3 percent and Turkey with exports amounted to about QR 152 million, a share of 7.8 percent.
The value of private sector exports to these countries represented 75.7 percent of the total value of exports during the same month.
Private Sector Exports in Q1
The Chamber’s newsletter said that the total volume of private sector exports during the first quarter of 2021 (from January to March) reached QR 5.08 billion, showing a decrease of 12 percent compared to the first quarter of 2020 which amounted to QR 5.78 billion.
Exports through all forms of certificates of origin increased in varying percentages expect for exports through GSP model which decreased by 84 percent.
Exports through Arab Countries model increased by 114 percent, followed by Singapore model which increased by 783 percent, GCC model which increased by 36 percent and General Model which increased by 7 percent.
Six commodities increased in the first quarter of 2021 compared to the same period in 2020.
Industrial Gases topped the list of commodities registering an increase of 181 percent, followed by lutreine which increased by 84.4 percent, paraffin with a 29 percent increase, chemical substances which increased by 22.1 percent, aluminum which increased by 5.3 percent and petrochemicals which increased by 3.5 percent.
On the other hand, exports of other commodities such as chemical fertilizers, essential and industrial oils and steel decreased by 57.4 percent, 42.9 percent, and 41.7 percent respectively.
Disinclinations of exports in Q1
As for economic blocs, Asian countries were at the top of economic blocs that received exports of private sector amounted to QR 2.5 billion with a share of 50.12 percent of the total value of exports, followed by GCC states with a share of 26.45 percent with exports of QR 1.3billion.
In third place came the group of EU states, with exports totaling QR 819 million representing 16.12 percent of the total value, followed by Arab countries excluding GCC states that received 209 million, a share of 4.11 percent.
USA came in the fifth place with exports amounted to QR 108 million, a share of 2.13 percent, followed by the group of African Countries (excluding Arab countries) with exports amounted to 45 million, a share of 0.89 percent, Other European Countries which received exports of QR 8million or a share of 0.16 percent and other American countries which received exports of QR 1 million or a share of 0.02 percent.
As for trade partners in Q1 2021, Oman (GCC Grouping) was at the top of the countries of destination of private sector’s exports with close to QR 1billion, a share of 20.6 percent of the total exports.
It is followed by India (Asian countries Grouping) with almost QR 945 million and a share of 18.6 percent and Hong Kong (Asian countries Grouping) with about QR 563 million, a share of 11.1 percent.
Netherlands came in fourth place with almost QR 463 million, a share of 9.1 percent and Turkey (Asian countries Grouping) with exports amounted to about QR 403 million, a share of 7.9 percent.
The value of private sector exports to these countries represented 67.4 percent of the total value of exports during the first quarter of 2021.
