The blockade is behind us, the future is LNG

Qatar has recovered from the blockade with key economic and market indicators all close to or even above pre-crisis levels. The focus is now on the LNG expansion which gets underway in the 2020s. We expect Qatar to record growth of 2.0% in 2018 driven by 5.0% growth in the non-hydrocarbon sector, with construction and manufacturing contributing the bulk of this growth. In 2019, the drag on the overall economy from the blockade should fade as financial conditions and confidence recover, helping trade, investment and consumption. However, there will be some drags on growth in 2019 as the government is likely to remain conservative on spending (we expect oil prices to average $65 next year), the infrastructure programme has peaked and lower growth in manufacturing is likely. Overall in 2019, we expect growth of 2.2% with growth of 4.8% in the non-hydrocarbon sector. Nonetheless, the future remains bright for Qatar as a massive expansion of LNG production by about 40% will drive investment and consumption starting from 2020. The rest of the economy will be further supported by reforms to the investment and business environment. Download the pdf at the following link: 20180611 – MENA Advisors – How will Qatar’s multi-billion dollar LNG expansion impact the economy Qatar has recovered from the blockade Key indicators point to an economy that has largely recovered from the blockade. Most key economic and market metrics are close to or better than their pre-blockade levels (see charts below). While an end to the blockade would……...

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