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Qatar is implementing an ambitious diversification strategy, while retaining its systemic role in the global natural gas market. Qatar accounts for one-third of global liquefied natural gas (LNG) trade and has emerged as an important global financial investor, labor importer, and donor. The authorities are executing a large public infrastructure program to advance economic diversification and prepare for the FIFA 2022 World Cup.
The economy has maintained strong growth momentum so far despite the large drop in oil prices since summer 2014. Real GDP growth has been stable at about 6 percent over the past three years, mostly driven by a double-digit expansion of the non-hydrocarbon sector. Falling global commodity prices have helped reduce inflation below 3 percent, despite a tight real estate market.
The short-term growth outlook is positive, but lower oil prices will lead to a substantial deterioration of the fiscal and external balances. Growth is expected to increase to about 7 percent in 2015 as the Barzan natural gas field starts production and the authorities continue implementing the public investment program. Falling import prices should continue keeping inflationary pressures in check. However, the government budget could fall into a deficit from 2016 onwards and external surpluses will shrink substantially. Growth is expected to slow over the medium term as public investment growth tapers and the private sector offsets the decline only partially. The main risks to the macroeconomic outlook are the possibility of lower-than-expected oil and natural gas prices and the possible side effects of public investments in the form over short-term overheating and medium-term excess capacity.

Source: International Monetary Fund
Updated: April 2015