High infra spending spurs Qatar 2013-2014 growth

A surge in public spending on infrastructure projects has spurred growth in Qatar’s economy in 2013 and is expected again to be the main growth driver in 2014, a newspaper in the super-rich Gulf country said on Tuesday.

The Arabic language daily Al Raya, citing a report by the Qatari planning ministry, said the country’s real GDP is projected to grow by around 6% in 2013 and 4.6% in 2014, adding that the forecasts were above previous official GDP projections.

It quoted the report as saying the non-oil sector drove growth this year and would remain so in 2014 as Qatar’s crude output is expected to be slightly lower while its massive LNG exports would remain stable.

“Strong investment in the infrastructure and real estate sector along with high public spending and the population growth will maintain the momentum in the economy,” the planning ministry said in its semi-annual report, carried by Al Raya.

The report quoted planning minister Saleh Al Nabit as saying Qatar’s GDP, which has recorded one of the world’s highest growth rates over the past decade, would “continue to expand in the foreseeable future, backed by growth in the non-hydrocarbon sector.”

The report said Qatar’s budget would remain in surplus through 2013-2014 but the balance would be lower because of the “large increase” in infrastructure spending.

Qatar has been locked in a massive infrastructure development drive involving spending of more than USD100 billion to brace for the 2022 World Cup.

Sitting atop the world’s third largest gas resources, Qatar now pumps around 77 million tones of liquefied natural gas per year, fetching it as much as its oil income.

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