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Sun 30 Oct 2016 01:36 PM

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Qatar will see rebound in economic growth this year, says QNB

Gulf's largest lender says weaker hydrocarbon production appears to have bottomed out

Qatar will see rebound in economic growth this year, says QNB
The West Bay skyline of Doha. (Getty Images)

Qatar will witness a rebound in economic growth in the second half of 2016, according to Qatar National Bank.

The Gulf’s largest bank said gross domestic product (GDP) growth rose 2 percent year on year in the second quarter, compared to 1.4 percent in the first quarter.

Weaker hydrocarbon production appears to have bottomed out and historically government spending has been stronger in the second half of the year, aiding non-hydrocarbon growth, the lender said in its latest economic update.

The report stated that population growth has increased up to 8.7 percent in the third quarter, compared to 6.7 percent in the first half of 2016, which should support demand for the service sector.

The GDP growth for the first half stood at 1.7 percent year on year despite hydrocarbon sector contracting by 1.2 percent in the second quarter, compared to the same period a year earlier.