DOHA: Qatar’s non-hydrocarbon real GDP recorded a solid 4.2 percent growth for the full year 2017. The country’s current account surplus widened to 6.4 percent of GDP in Q4 in line with higher oil prices while the financial account deficit narrowed. The Industrial production surged to 7.4 percent year-on-year(y/y) growth in Q3 on a rebound in the mining sector likely due to less maintenance on LNG trains, said QNB.
The country’s real GDP growth slowed marginally in Q4 mainly due to temporary shutdowns for LNG maintenance. Inflation slowed to 0.1 percent y/y in April; food inflation eased while housing inflation picked up.
QNB’s monthly monitor noted yesterday that Qatar’s Brent crude prices rose to an average of $72/b in April 2018; Qatar’s oil production fell to 539,000 b/d in February from 621,000 b/d prior.
The real estate price index continued its recovery, rising 1.0 percent month-on-month (m/m) in March. 5-star and 4-star hotel occupancy rates rose to 60 percent and 62 percent in March from 58 percent and 60 percent in February respectively.
The fiscal account remained in deficit in Q3 but should recover subsequently as revenue rises in line with higher oil prices. Exports grew 22.0 percent y/y in March as a result of higher oil prices while imports grew marginally at 1.3 percent y/y. The current account surplus widened to 6.4 percent of GDP in Q4 in line with higher oil prices while the financial account deficit narrowed.
QCB foreign exchange reserves remained broadly stable at around $38bn, equating to 6 months of import cover. Bank assets expanded to $383.2bn growing 8.8 percent y/y in March. Bank deposit growth was 9.1 percent y/y in March compared to 6.0 percent y/y in February. Credit growth was 9.6percent in March, driven by lending to the public sector, which grew 15.0 percent y/y. Deposits from the non-resident and private sector remained stable in March.
Qatar’s Broad money supply (M2) grew by 16.1 percent in March compared to 15.7 percent in February. M2 is a calculation of the money supply that includes all elements of M1 as well as “near money.” M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds and other time deposits.
Interbank rates continue to rise in line with increases in US short-term rates.
