‘Outlook for non-energy sector remains robust’
The Peninsula
DOHA: Qatar s non energy sector is positioned for strong growth. The country s commitment to actively pursuing an economic diversification agenda has...
DOHA: Qatar’s non-energy sector is positioned for strong growth. The country’s commitment to actively pursuing an economic diversification agenda has created many lucrative opportunities for savvy investors.
Speaking to The Peninsula, Scott Livermore, ICAEW Economic Advisor and Chief Economist and Managing Director at Oxford Economics discussed the outlook for the energy and non-energy sectors in the region.
Oil output cuts mean that the energy sectors will be a drag on economic growth in the Gulf Cooperation Council (GCC) this year and “we forecast a decline of 2.6 percent. However, the outlook for the non-energy sectors remains robust. The PMIs remain firmly in expansionary territory, underpinned by strong domestic activity, with business sentiment running high despite some upward pressure on costs. We project aggregate non-energy growth of 4.2 percent for the GCC this year, similar to last year,” he said.
Sharing insights regarding projections in GDP growth of Qatar and GCC, Livermore said, “At the GCC level, we anticipate a gradual recovery and project growth of 2.2 percent this year, picking up to 4.4 percent as oil output cuts are unwound.”
“For Qatar, we forecast 2024 GDP growth of 2.2 percent, with the pace seen rising to 2.8 percent in 2025. Non-energy sector momentum is strengthening as we enter second half (H2) of this year, benefitting from higher activity and robust sentiment. We project the non-energy economy will expand by 2.5 percent this year. Meanwhile, industry remains under pressure, mirrored in some softening of goods exports,” he added.