Qatar: 2016 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Qatar
IMF Staff Country Reports, April 10, 2017
Source details
- Canonical URL
- Qatar: 2016 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Qatar
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Bibliographic details
- Published: April 10, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475593518.002
Overview
- The 2016 Article IV Consultation highlights the adverse impact of lower hydrocarbon prices on the macroeconomic performance of Qatar.
- Growth has slowed despite still-resilient nonhydrocarbon activity.
Macroeconomic performance and projections
- Real GDP growth of 2.7 percent is estimated for 2016.
- Growth is expected to slow in the medium term as public investment growth tapers off and hydrocarbon output continues to slow.
- A moderate recovery in global commodity prices is expected to contribute to gradual improvement in balances over the near to medium term.
Inflation and subsidy reform
- Inflation remained low despite subsidy cuts, averaging about 2.7 percent in 2016.
- Further subsidy cuts are expected to help improve fiscal and external balances gradually.
Fiscal and external balances
- The report projects gradual improvement in the fiscal and external balances driven by:
- Further subsidy cuts.
- A moderate recovery in global commodity prices.
- The introduction of a value-added tax.
Policy recommendations and tools
- Introduce a value-added tax to support fiscal consolidation and external balance adjustment.
- Continue subsidy reform to reduce fiscal pressures.
- Manage public investment growth as hydrocarbon output slows to sustain medium-term macroeconomic stability.
International Monetary Fund. "Qatar: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Qatar" (April 10, 2017).
Content in this bundle
- Country Report