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Qatar economy normalizes after 2022 surge, says IMF

The IMF forecasted a 1.9% GDP growth for Qatar in 2024

Qatar economy normalizes after 2022 surge, says IMF
[Source photo: Anvita Gupta/Fast Company Middle East]

Qatar’s economy has the potential to expedite its transformation, paving the way for sustainable future growth.

The International Monetary Fund (IMF) predicts a return to normalcy for Qatar’s economy after a World Cup-fueled surge in 2022. 

While forecasting a 1.9% GDP increase for Qatar in 2024, the IMF acknowledged the country’s resilience to recent global headwinds, including the ongoing Israeli-Palestinian conflict. 

“Risks are broadly balanced. Maintaining prudent macroeconomic policy and intensifying reform efforts will support Qatar’s resilience to shocks and accelerate its economic transformation,” the IMF said, concluding its Article IV consultation.

The IMF recommends adopting value-added tax (VAT), private sector and labor market reforms, and gradual subsidy removal to further diversify the economy.

Qatar, a leading Liquefied Natural Gas (LNG) exporter, is expected to see an average growth of 5.5% in the coming years, driven by LNG expansion and ongoing economic reforms. 

However, the IMF urges continued diversification away from hydrocarbons, noting that Qatar’s growth lags behind its Gulf Cooperation Council (GCC) neighbors, which is forecast to rebound to 2.7% in 2024.

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