Sunday, May 9, 2010

Qatar’s economy grows by 8.6% in 2009, below expectations

Qatar's real GDP grew by 8.6% in 2009, lower than general market expectations and the rate stated by the Qatar’s PM earlier in 2010, showed data released by the Qatar Statistics Authority.

The 2009 growth figure is lower than the 11% cited by Qatar’s Deputy Prime Minister in January 2010.

The QSA released real GDP data for the 2005 - 2009 period showing real GDP grew by 26.8% in 2007 and 25.4% in 2008, compared to the previously announced 5.3% and 16%. The 2009 data showed the gas sector growing by 14.7% in 2009, from 36.4% in 2008, trade and hospitality growing by 21.7% in 2009, from 13.8% in 2008, transportation by 20.7%, compared to 41.7%, financial services by 19.6% in 2009, compared to -1.5% in 2008, and government services by 43.2% in 2009, compared to 36.5% in 2008.

Comment: While the overall growth rate is below our expectation of 9.8% in 2009, the detailed data shows growth in the financial services, trade and government services sectors, as we had expected. We expect real GDP growth to reach 15% in 2010, backed by the increment in LNG exports capacity and increased hydrocarbon and services sector activities.