Doha – Mubasher: Qatari economy is expected to grow 2.8% in 2018, to average 3% later in 2019 and 2020 on the back of the recovery of oil prices.
Also, the $10 billion Barzan natural gas project will commence its production in 2020, while Qatar is executing the constructions required for hosting 2022 World Cup, according to a report released by the World Bank.
“Qatar’s peg to the US Dollar means that monetary policy will gradually tighten in tandem with the US Government efforts to ease the costs and to lighten the effects of the blockade on the population,” the report found.
Over the medium-term, the Qatari government tax policy – the levy of the value-added tax (VAT) and the excise tax – will push back against the fiscal deficit.
“Although inflation should also rise to close to 2.4% as a result in 2018. A recovery in imports, in particular, capital goods related to infrastructure spending, should keep the current account surplus modest in the near term,” the international financial institution revealed.
Qataris are not to be afraid of poverty, as their government has clear and applicable measures to identify and support low-income households.