Posted on January 07, 2017
Qatar is expected to have registered real economic growth of 3.7% year-on-year during the third quarter (Q3) of 2016 with the hydrocarbons segment expanding 2.7% and non-hydrocarbons by a higher 4.7%, according to the Ministry of Development Planning and Statistics (MDPS).
The country’s gross domestic product or GDP at constant prices (with a base year of 2013) is estimated to be QR204.62bn, an increase of 3.6% compared to the second quarter (Q2) of 2016. The hydrocarbons segment witnessed a 3.2% real growth and non-hydrocarbons by 4.1% against Q2 2016, MDPS said in its latest report. Among non-hydrocarbons, the construction sector’s real growth is estimated to be 12.4% year-on-year and 6.2% compared to Q2 2016, while transport and storage saw a 7.9% expansion year-on-year, but a marginal 0.2% dip against Q2, 2016.
The wholesale and retail trade segment has reported 2.6% real growth year-on-year and it expanded by a robust 15.8% compared with Q2, 2016. The financial and insurance sector registered a 6.9% increase year-on-year, while it showed a 1.9% decrease against Q2, 2016. The manufacturing sector’s real growth showed a decrease of 1.3% year-on-year, whereas it registered a 3.7% jump compared with Q2, 2016. On a nominal basis (at current prices), Qatar’s GDP is estimated to have declined 5.7% year-on-year, while it showed 4.2% growth compared with Q2, 2016. The hydrocarbons registered a 22.1% plunge year-on-year but saw an 8.7% expansion quarter-on-quarter and non-hydrocarbons’ growth was 4.2% and 2.3% respectively.
“In Q3 2016, the drop in the international price of crude oil and related goods has led to a decline in nominal gross value added (GVA) of this sector, as it had happened in previous quarters of 2015 and 2016,” a MDPS spokesman said. The construction sector saw its nominal GVA expand 11.6% year-on-year and 2.4% compared with Q2, 2016, followed by wholesale and retail trade (5.3% and 14.8%), and transport and storage (7.4% and 4.5%); whereas financial and insurance sector saw an 7.8% jump year-on-year, but showed a decrease of 6.8% quarter-on-quarter.
The nominal GVA of manufacturing witnessed a 13.6% decline year-on-year due to falling international prices, while the drop in real terms is mainly explained by the decline in the production of fertilisers and the manufacturing of plastics. The sector’s nominal growth was up 3.8% against Q2, 2016. On the expenditure front, household final consumption expenditure (HFCE) grew 7.7% year-on-year on account of rising population and price rise in consumer items in the country. The share of HFCE in the nominal GDP was estimated at 25.2% during Q3, 2016. The corresponding figures for Q3, 2015 and Q2, 2016 were 22.1% and 26.3% respectively.
Government final consumption expenditure (GFCE) has been estimated to grown 8.1% year-on-year during Q3, 2016. The share of GFCE in nominal GDP was 22.9%. The corresponding shares for Q3, 2015 and Q2, 2016 have been 20% and 23.9% respectively. The country’s gross capital formation (GCF) is estimated to have grown 10.7% year-on-year during Q3, 2016.
source: Gulf Times