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Friday, November 16, 2018
06

Qatar Economic Growth is Sustainable

 

The Qatari Bank’s Joint Reception was held on the sidelines of The World Bank IMF Annual Meeting on 13th Oct 2017 at the Four Seasons Hotel, Washington and Doha Bank participated in the same. Dr. R. Seetharaman, CEO of Doha Bank stated” I witnessed participation relating to global economic outlook, the future of globalization, rise in Sovereign debt vulnerabilities, systemic risk and macro prudential testing in Banking, trade development linkages at the IMF meeting. The global upswing in economic activity is strengthening. Global growth, which in 2016 was the weakest since the global financial crisis at 3.2 percent, is projected to rise to 3.6 percent in 2017 and 3.7 percent in 2018. The broad-based upward revisions in the euro area, Japan, emerging Asia, emerging Europe, and Russia where growth outcomes in the first half of 2017 were better than expected— more than offset downward revisions for the United States and the United Kingdom. However the recovery is not complete: while the baseline outlook is strengthening, growth remains weak in many countries, and inflation is below target in most advanced economies. In line with stronger-than-expected momentum in the first half of 2017, the forecast sees a stronger rebound in advanced economies in 2017 to 2.2 percent and in 2018 to 2 percent respectively, driven by stronger growth in the euro area, Japan, and Canada. Growth in most of the other advanced economies, with the notable exception of the United Kingdom, picked up in the first half of 2017 from its pace in the second half of 2016, with both domestic and external demand contributing.”


Dr. R. Seetharaman gave insight on Emerging and Developing economies and on Qatar economy. He said “Growth prospects for emerging and developing economies are marked up by 0.1 percentage point in 2017 and 2018 relative to April 2017 to 4.6 percent and 4.9 percent respectively, primarily owing to a stronger growth projection for China. Among emerging market and developing economies, higher domestic demand in China and continued recovery in key emerging market economies supported growth in the first half of 2017. In India, growth momentum slowed, reflecting the lingering impact of the authorities’ currency exchange initiative as well as uncertainty related to the midyear introduction of the country-wide Goods and Services Tax. Higher external demand boosted growth in other emerging market economies in East Asia. In Brazil, strong export performance and a diminished pace of contraction in domestic demand allowed the economy to return to positive growth in the first quarter of 2017, after eight quarters of decline. Recovering domestic and external demand supported rebounding growth in Russia and Turkey. Qatar has not affected natural gas markets on account of economic blockade, as Qatar’s exports have continued. IMF Oct 2017 had revised Qatar economy growth to 3.1% in 2018 from itself earlier April 2017 forecast of 2.84%. Qatar will raise LNG production by 30% to 100mtpa within five to seven years after lifting a moratorium on gas development earlier this year. Qatar Banking Sector had witnessed lending growth close to 7 % YTD till August 2017, the Government sector, real estate and services sector were the key drivers of growth. The deposit growth was close to 9% YTD till August 2017. Overall Qatar’s growth is sustainable.

 

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