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Qatar has low oil prices due to strong macroeconomic fundamentals:QNB

Qatar has low oil prices due to strong macroeconomic fundamentals:QNB

DOHA: QNB Group has published its Qatar Economic Insight September 2016 report. The report examines recent developments and the outlook for the Qatari economy as it continues its strong growth based on non-hydrocarbon investment spending.

Qatar’s economy has weathered low oil prices due to strong macroeconomic fundamentals including a low fiscal breakeven price, the accumulation of significant savings from the past and low levels of public debt.

We expect real GDP growth to accelerate from 3.2% in 2016 to 3.8% in 2017 and 4.1% in 2018 with the ramp up in investment spending and initial gas production from the Barzan gas project.

Oil prices are expected to recover over the medium term, averaging USD44.7/barrel in 2016, before rising gradually to USD55.0/b in 2017 and USD57.9/b in 2018 as declining US oil production and steady demand growth are expected to reduce excess supply.