Dubai, United Arab Emirates (CNN) – The International Monetary Fund has predicted that the Qatari economy will shrink by about 2.5% in 2020 due to a decrease in global demand for hydrocarbons and a decline in domestic activity during the lockdown period imposed by the Corona pandemic.
With the decline in hydrocarbon exports, the IMF said in a statement on Sunday against the background of its conclusion of a series of hypothetical meetings to review the latest economic developments. “Predictions indicate that the current account balance will shift in the current year to a deficit of about 1.5% of GDP. Large expatriate area for the accumulation of international reserves.
Despite this, the statement said that Qatar was able to contain the repercussions of the Corona pandemic well, which allowed it to resume economic activities since last September, as it provided support packages for the economy amounting to 75 billion Qatari riyals, or about 20.5 billion dollars.
Thus, the World Bank expected that the Qatari economy will witness a gradual recovery next year, with a GDP growth of 2.7% in 2021, supported by the increase in laurel production and the recovery of domestic demand.
The statement said that the risks surrounding the expected outlook “appear to be mainly driven by global prospects and leaning towards negative developments. These risks stem from the uncertainty surrounding the global growth recovery, the success and speed of availability of vaccines and the end of the pandemic, and oil prices whose future prospects depend on achieving global recovery. The prospects for positive developments in the expected outlook stem from the success of efforts to bridge the rift in regional diplomatic relations and the recovery of global growth more strongly than expected.
The fund also expected that the 2021 budget will witness a deficit of about 6%.
