{ "title": "IMF Staff Concludes Virtual Visit with Qatar", "publication": "IMF News, December 19, 2020", "sourceUrl": "https://www.imf.org/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar", "canonical": "https://www.imf.org/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar", "overlayPath": "/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar/index.md", "summary": "Swift implementation of containment measures limited the health impact of the Covid-19 pandemic.", "publishDate": "2020-12-19", "sections": [ { "heading": "Health response and containment", "content": "- Swift implementation of containment measures limited the health impact of the Covid-19 pandemic.\n- Qatar implemented strict prevention and containment measures and had one of the highest per-capita testing rates in the world.\n- The country resumed all economic activities since September.\n- Qatar provided medical and financial pandemic relief to many other countries." }, { "heading": "Policy response and liquidity support", "content": "- Policy response centered around a QR75 billion package to support the economy.\n- Key elements of the package:\n - Qatar Central Bank (QCB) zero-percent repo facility (QR50 billion) to facilitate ample liquidity in the banking system.\n - Credit guarantee scheme totaling QR5 billion, administered by the Qatar Development Bank, to support small and medium enterprises (SMEs) and protect jobs.\n - Measures allowing households and businesses to defer loan repayments until the end of the year.\n - Waiver of rental and utility fees.\n - Measures to ensure salary payments and/or basic allowances to workers and to reduce custom tariffs on critical supplies, all totaling QR2.1 billion.\n- QCB lowered its policy rates to support credit to the private sector." }, { "heading": "Fiscal position and financing", "content": "- Economy projected to contract by about 2.5 percent in 2020.\n- Current account balance forecast to turn into a deficit of about 1.5 percent of GDP in 2020 due to lower hydrocarbon exports.\n- Proactive reprioritization of spending helped limit the fiscal deficit to a projected 2.5 percent of GDP in 2020.\n- The $10 billion international bond issuance in April attracted significant investor interest and allowed Qatar to preemptively cover its external financing needs.\n- 2021 budget projections:\n - Projects a deficit of around 6 percent of GDP.\n - Revenues budgeted to decline by 24 percent with respect to the 2020 budget due to a delayed pass-through from oil to gas prices, lower corporate tax receipts, and a prudent oil assumption.\n - Expenditures projected to decline by 8 percent, mainly driven by lower capital spending (a 20-percent decrease compared to 2020) as World Cup-related projects near completion.\n- Policy recommendation: continue efforts to mobilize non-oil revenues and optimize expenditures; gradual fiscal consolidation to help preserve net public sector wealth." }, { "heading": "Economic outlook and risks", "content": "- Real GDP growth projected at 2.7 percent in 2021, supported by increasing gas production and the rebound in domestic demand.\n- Risks tilted to the downside, mainly from:\n - Uncertainty about the global growth recovery.\n - Success and speed of vaccination and pandemic resolution.\n - Oil prices, whose outlook depends on the global recovery.\n- Upside risks:\n - Successful resolution of the regional diplomatic rift.\n - Stronger-than-envisaged global growth rebound." }, { "heading": "Financial sector soundness", "content": "- Latest financial soundness indicators show the banking sector remains well-capitalized and liquid.\n- The moratorium on loan repayments provides an opportunity for banks and businesses to adjust.\n- Continued proactive monitoring of credit portfolio risks recommended to support banks’ role in the recovery.\n- IMF welcomes continued cooperation across financial sector regulators to strengthen regulatory and supervisory frameworks." }, { "heading": "Structural reforms and diversification", "content": "- Ambitious structural reform agenda underpins efforts to enhance long-term potential growth and economic diversification.\n- Noted reforms and measures:\n - Abolishment of the Kafala sponsorship system and strengthening labor protection to facilitate labor mobility and spur productivity.\n - New real estate and public-private partnerships (PPP) laws to help improve competitiveness.\n - Reforms to strengthen minority investor protection, contract enforcement, and insolvency resolution to improve the business environment, mobilize foreign direct investment, and support diversification." }, { "heading": "Engagement and next steps", "content": "- IMF team led by Ms. Mercedes Vera-Martin held virtual meetings from December 6-14, 2020.\n- The team met with Minister of Finance H.E. Ali Shareef Al-Emadi, Governor of the Qatar Central Bank H.E. Sheikh Abdulla Bin Saoud Al-Thani, other senior officials, and representatives of the private sector.\n- The mission will not result in a Board discussion.\n- The team looks forward to continuing the dialogue ahead of the 2021 Article IV Consultation.\n\nIMF staff statement, December 19, 2020.\n\n---\n\n\n References\n\n- Qatar and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar" } ], "bullets": [ "[Markdown version](/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar/index.md)", "[Structured JSON version](/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar/index.json)", "[Bundle manifest](/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar/bundle-manifest.json)", "Published: December 19, 2020", "Swift implementation of containment measures limited the health impact of the Covid-19 pandemic.", "Qatar implemented strict prevention and containment measures and had one of the highest per-capita testing rates in the world.", "The country resumed all economic activities since September.", "Qatar provided medical and financial pandemic relief to many other countries.", "Policy response centered around a QR75 billion package to support the economy.", "Key elements of the package:", "QCB lowered its policy rates to support credit to the private sector.", "Economy projected to contract by about 2.5 percent in 2020.", "Current account balance forecast to turn into a deficit of about 1.5 percent of GDP in 2020 due to lower hydrocarbon exports.", "Proactive reprioritization of spending helped limit the fiscal deficit to a projected 2.5 percent of GDP in 2020.", "The $10 billion international bond issuance in April attracted significant investor interest and allowed Qatar to preemptively cover its external financing needs.", "2021 budget projections:", "Policy recommendation: continue efforts to mobilize non-oil revenues and optimize expenditures; gradual fiscal consolidation to help preserve net public sector wealth.", "Real GDP growth projected at 2.7 percent in 2021, supported by increasing gas production and the rebound in domestic demand.", "Risks tilted to the downside, mainly from:", "Upside risks:", "Latest financial soundness indicators show the banking sector remains well-capitalized and liquid.", "The moratorium on loan repayments provides an opportunity for banks and businesses to adjust.", "Continued proactive monitoring of credit portfolio risks recommended to support banks’ role in the recovery.", "IMF welcomes continued cooperation across financial sector regulators to strengthen regulatory and supervisory frameworks.", "Ambitious structural reform agenda underpins efforts to enhance long-term potential growth and economic diversification.", "Noted reforms and measures:", "IMF team led by Ms. Mercedes Vera-Martin held virtual meetings from December 6-14, 2020.", "The team met with Minister of Finance H.E. Ali Shareef Al-Emadi, Governor of the Qatar Central Bank H.E. Sheikh Abdulla Bin Saoud Al-Thani, other senior officials, and representatives of the private sector.", "The mission will not result in a Board discussion.", "The team looks forward to continuing the dialogue ahead of the 2021 Article IV Consultation.", "[Qatar and the IMF](http://www.imf.org/external/country/QAT/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar/index.md", "json": "/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar/index.json", "bundleManifest": "/en/news/articles/2020/12/18/pr20380-qatar-imf-staff-concludes-virtual-visit-with-qatar/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T00:02:02.823Z" }