Qatar’s inflation will average 2.6% this year, significantly above a consensus of just 1.5%, BMI Research has said in a report.
Qatar will emerge as one of the fastest growing construction markets on a global basis, BMI Research said and it forecasts an annualised average sector expansion of 14.1% out to 2022.
Nationalisation programmes in the region are designed to reduce the states ' reliance on foreign workers by encouraging, and sometimes compelling, private sector firms to hire nationals.
Price pressures in Qatar will “remain manageable,” BMI Research said and noted the government will continue to absorb added import costs linked to the reorganisation of supply chains, which is necessitated by some GCC countries' blockade against the country.
Despite continued improvements in liquidity conditions in Saudi Arabia's commercial banking sector, credit demand will remain subdued throughout the rest of 2017, owing to a weak macroeconomic backdrop, BMI Research has said.
Qatar will play a key role in meeting the burgeoning demand for liquefied natural gas in South Korea, a new report has shown.
An increase in the forecast Opec basket price to $54 a barrel in 2017 will give some respite to the GCC countries, BMI Research said, even as the Fitch Group company expects an aggregate fiscal deficit of $183bn for the region next year.
Fuel subsidy reform will help Qatar reduce its budget deficit by allowing spending to decrease, according to BMI Research, a Fitch Group company.
Qatar possesses greater financial buffers and continues to fund large government projects, in preparation for the 2022 FIFA World Cup; BMI Research said, and noted that the country faced lower economic risks compared to other countries in the region.