Qatar Booms

A broad range of indicators point to a booming economy

• Qatar’s December PMI eased from its peak in November but continues to indicate a rapidly expanding non-oil private sector, particularly in the construction sector, and a positive outlook for 2022

• Rising energy prices are supporting growing confidence and activity, the latest current account data for Q3 shows exports of $23bn leading to the largest current account surplus since 2014 with even stronger exports reported in October and November
• Progress on the North Field LNG expansion continued on the first day back in the office this year, with the award of 13 wellhead platforms and associated infrastructure to McDermott of the US — Qatar is on track to increase LNG production from 77m tonnes per annum to 126 mtpa in 2025/26
• The 2022 budget, published in December, pointed to relatively moderate increases in major project capex (3%) and government salaries (1%) when compared to last year’s budget
• Qatar’s inflation was running at over 6% in the year to November, driven by travel and transport — this was the highest since 2008, even though rents fell 4%