DOHA: The Qatar Central Bank’s (QCB) foreign exchange reserves jumped 12.7 percent to $44.8bn in May on month-on-month, equating to 7.0 months of import cover. Bank assets growth was 2.5 percent y/y in May. Credit growth was 2.7 percent as deposits from the non-resident and private sector remained stable in May.
QNB’s monthly monitor noted yesterday the country’s real GDP growth slowed in Q1 due to a further fall in hydrocarbon output. Powered by the construction sector, non-hydrocarbon real GDP growth was a solid 4.9percent y/y in Q1 2018. CPI inflation dropped to 0.1 percent y/y in June; food inflation continued to cool even as deflation in housing costs moderated.
Booming construction output, up 17.2 percent y/y, remained the key driver of activity in the non-hydrocarbon sector. Manufacturing gained 3 percent. Brent crude prices slipped to an average of $76/b in June; Qatar’s oil production fell to 578000b/d in April from 616000b/d prior.
Broad money supply (M2) steadily grew by 11.64 percent in May and Interbank rates remain steady despite higher US short-term rates.
The fiscal account remained in deficit in Q4 but should recover subsequently as revenue rises in line with higher oil prices. The current account surplus widened to 7.3 percent of GDP in Q1, while the financial account deficit narrowed. Exports grew 22 percent y/y in May as a result of higher oil prices, while imports growth was a more moderate 2.7 percent.
The real estate price index continued its recovery, edging up 1.0 percent month-on-month in March. 5-star and 4-star hotel occupancy rates slightly fell to at 57 percent and 61 percent respectively. Industrial production rose to 1.4 percent y/y in April.
