Mubasher: Standard & Poor's (S&P) Global Ratings on Sunday affirmed Qatar’s long-term ratings at" AA-" with a negative outlook.
The international agency may further reduce its ratings for Doha if the diplomatic dispute with the Gulf has weighed on the average per capita income, according to S&P’s recent report.
“The negative outlook reflects our view of the potential consequences of the boycott on Qatar's economic, fiscal, and external metrics, especially if the boycott is tightened or prolonged,” S&P explained.
“We could lower the ratings if policy predictability in Qatar were to become more uncertain. In order to support its economy and banking system, the Qatari government is liquidating and utilizing part of its fiscal assets,” the ratings agency said.
It is expected that the gross domestic product (GDP) per capita in the world’s biggest exporter of liquefied natural gas (LNG) would grow by 2.2% in 2018 to $58,600, and it may increase 3% by 2020, the report added.
Qatar’s economy levelled up 1.5% in 2017, while the inflation hit 3.8% and it is forecast to record 4% in 2018, the report noted.