Qatar Central Bank’s (QCB) foreign exchange reserves rose 1.8 percent month-on-month to reach $49.3bn in December 2018, equating to 8.8 months of import cover. Qatar’s bank asset growth was 1.8 percent y-o-y in January.
QNB monthly report noted yesterday credit growth was 3.1 percent y/y in January. Bank deposit growth was down 1.7 percent y/y in January. Private sector, public sector and non-resident deposits declined respectively 0.3 percent, 4.3 percent and 4.4 percent m/m in January. Broad money supply (M2) declined 6.5 percent y/y in December. Interbank rates remained stable.
Qatar’s real GDP growth has accelerated in Q3 on the back of a stabilisation in hydrocarbon output. Construction as well as finance & real estate led the way for a 4.3 percent growth in non-hydrocarbon GDP over Q3 2018. Industrial production was broadly flat at 0.3 percent in December. The real estate price index is signaling prices are stabilising. 5-star and 4-star hotel occupancy rates were stable at 56 percent and 62 percent respectively in December.
The fiscal account remained in surplus at 1.0 percent of GDP in Q3. The trade balance was marginally up 0.8 percent y/y in January. The current account surplus has widened further in Q3.
Qatar Sovereign 5-year CDS Spreads remained stable at around 75 bps. QIBOR 3-month interest rates remained stable while LIBOR 3-month interest rates declined.
Brent crude prices rose to average $60.2/b in January; Qatar’s oil production increased to 615,000b/d in December from 599,000b/d in November.
