By Andy Sambidge
QNB Capital report says diversification will continue to boost Qatar's economy.
Qatar is set to see real GDP growth of 14.5 percent this year, increasing to 17 percent in 2011, QNB Capital has said in a new report.
In its Qatar Economic Review, QNB Capital said the economic growth would be driven not only by the energy sector, as the government continues its efforts to diversify the economy away from oil and gas.
QNB Capital said Qatar’s natural gas sector would see LNG production scaling up to 45mn tonnes this year and 60mn tonnes in 2011, Qatar daily Gulf Times reported on Thursday.
The report said it expected oil and gas prices to remain high this year and next year, which remains the basis for its estimating higher real GDP growth for Qatar in 2010 and 2011.
According to QNB Capital, Qatar’s non-oil and gas sector is forecast to see a 15.8 percent growth in 2010 and 15 percent in 2011, mainly due to the rapid growth in manufacturing, transport and communications and infrastructure.
“Qatar’s nominal GDP growth showed a stunning annual average growth of 27.2% between 2005 and 2009,” QNB Capital said.
“The economic diversification has become the cornerstone of the Qatari economy with the non-oil and gas sector overtaking the oil and gas sector for the first time in 2009 and also with the gas sector overtaking oil as the single largest contributor to the economy," it added.
The non-oil and gas sector accounted for 53.8 percent of the overall GDP in 2009.