IMF praises economic policies

Commends diversification efforts

Predicts 4% rise in GDP

The International Monetary Fund has welcomed Qatar’s progress on economic reforms and predicts resilience and opportunities for the Gulf state, providing it continues to implement “sound” economic and fiscal policies.

“Preserving these strengths is crucial to protect Qatar’s outlook against risks on the horizon,” said Nathan Porter, the Fund’s assistant director for the Middle East and Central Asia, following a trip to the country earlier this month.

The Qatari capital, Doha, came under an Israeli airstrike targeting Hamas political leaders the day after the Fund’s visit. The attack raised questions about continued regional instability and the Gulf’s role as a safe haven for international business.

“Fluctuations in global energy prices, heightened global uncertainty and possible disruptions to trade routes pose challenges to Qatar’s export earnings, fiscal revenues and economic activity,” Porter said in a statement, urging the government to pursue “accelerated structural reforms”.

The IMF praised Qatar’s work in pressing ahead with its Third National Development Strategy to increase economic diversification and competitiveness, embrace digitalisation and attract more skilled foreign talent while also boosting the hiring of Qatari nationals in the private sector.

Qatar’s economic indicators at a glance

Liquefied natural gas production, which is slated to begin next year at the North Field expansion project, combined with the country’s “significant financial resources” are expected to boost “both fiscal and external balances” and “provide important buffers against shocks”.

Qatar’s sovereign credit spreads are some of the lowest in more than 10 years, according to an IMF press release.

Strong non-oil growth, especially a tourism sector that had almost 30 percent more visitors year-on-year, pushed gross domestic product up 2.4 percent in 2024. 

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A still-growing economy outside the hydrocarbon sector and increased activity from the North Field expansion are projected to drive an average 4 percent GDP rise over the medium term, the IMF said.

Inflation in Qatar remains moderate, fiscal and current-account surpluses are projected to continue – with government debt falling to 40 percent of GDP last year – and banks are well capitalised and profitable.

“Reliance on external funding remains a vulnerability, which is partially mitigated by a shift in banks’ funding structures towards longer-term and more stable domestic sources,” said Porter, who is also mission chief to Qatar and Sudan.