The Gulf state of Qatar is set to witness rapid economic expansion with 13 per cent GDP growth this year, becoming the best performing economy in the Gulf Cooperation Council (GCC) region.
According to a Bank of America Merrill Lynch (BAML) forecast, the country’s GDP will grow by 7.5 per cent in 2012. However, it did not project the size of the Qatar economy either this year or in 2012.
BAML forecast that the consumer price index inflation would stand at 2.5 per cent this year and 3.5 per cent in 2012.
Qatar’s liquid natural gas production capacity stands at 77 million tonnes per year, which is facilitated by 14 trains — seven each in Qatargas and RasGas, the country’s two liquefied natural gas producers.
LNG exports rose 53 per cent to reach 55.7 million tonnes last year compared with 36.4 mt in 2009, the BAML report said.
The report shows other GCC economies will trail Qatar this year and in the next in terms of GDP growth, with Saudi Arabia (4.9 per cent) followed by Oman (3.7 per cent), Kuwait (3.1 per cent), UAE (2.8 per cent) and Bahrain (—2.2 per cent).
Qatar has successfully expanded its export market for LNG and can effectively redirect gas shipments to Asia, Europe and Latin American countries to take advantage of better prices.
In a recent report on Qatar, the IMF expected the economic outlook for 2011 to “remain strong”. LNG and condensates production will be the key drivers for the economy in 2011 and beyond, it said.
The Bank of America Merrill Lynch report comes close on the heels of Qatar achieving the highest rank in the Middle East in the Global Innovation Index (GII).