Washington, DC: An International Monetary Fund (IMF) staff team, led by Mr. Nathan Porter, visited Doha during January 25–February 5, 2026 to conduct discussions for the 2026 Article IV consultation. The mission will submit a report to IMF management and Executive Board, which is scheduled to discuss the Article IV Consultation in March 2026.
At the conclusion of the visit, Mr. Porter issued the following statement:
“Qatar has shown strong resilience amid economic and geopolitical challenges, supported by sound macroeconomic management, the significant expansion of LNG production over the medium term, and strong non-hydrocarbon economic growth amid reform implementation guided by the Third National Development Strategy (NDS3). Economic growth recovered to 2.4 percent in 2024, strengthened further to around 3 percent through the third quarter of 2025, and is expected to average around 4 percent in the medium term. Medium-term inflation is projected at around 2 percent, consistent with the currency peg to the US dollar. Fiscal and external current account surpluses are set to continue in the medium term and the financial sector remains strong. Risks to the growth outlook include a global growth slowdown, tighter financial conditions, geopolitical tensions, and long-term uncertainty over LNG market oversupply and climate stress. On the upside, gains from accelerated reforms and LNG production expansion could boost growth more than expected.
“The fiscal stance remains consistent with a level that ensures intergenerational equity, and broadly prudent spending plans are envisaged under the 2026 budget. The positive economic outlook provides an opportunity to accelerate revenue diversification, especially by introducing a value-added tax; enhance spending efficiency; improve transparency of domestic gas pricing; and continue reorienting public spending to support reforms facilitating private sector growth. Adopting a full-fledged medium-term fiscal framework, with a fiscal anchor aimed at ensuring intergenerational equity and complemented by greater transparency and risk management, will enhance fiscal sustainability and support economic transformation. Recent pension reforms are welcome and should be supported by enhanced actuarial transparency to support fiscal planning.
“The QCB’s policy rate changes have been in line with those of the U.S. Federal Reserve, consistent with the currency peg to the U.S. dollar. Enhancing operational capacity and implementing IMF technical assistance recommendations are important for strengthening monetary policy support of the peg and strengthening market development. Strong regulatory supervision has sustained financial stability, and it should be supported by continued vigilance for banks’ real estate exposures, increased net foreign liabilities, and strong interconnectedness with the public sector. Staff recommended continued reform, including by introducing a positive neutral counter-cyclical capital buffer to bolster banking sector resilience, diversifying funding sources to mitigate sovereign-bank risks, and lengthening the maturity of banks’ funding. Qatar’s welcome advances in financial inclusion and digitalization should be weighted with measures to mitigate potential new risks. Keeping the momentum in domestic financial market deepening, guided by the Third Financial Sector Strategy, is also important while Qatar’s excellent progress in fighting financial crimes should continue.
“Building on its achievements so far, Qatar’s efforts to transition to a diversified, knowledge-based economy guided by the NDS3 should prioritize building and retaining human capital, enhancing the skills and private sector employment of nationals, fostering innovation including digitalization and AI capabilities, easing SMEs’ access to finance, and promoting trade diversification. Realizing the ambitious goals of NDS3 calls for careful and strategic implementation and reform sequencing. Enhancing data availability and quality would also support the analysis and development of ongoing and future plans and the path forward.
“The staff team expresses its appreciation to the authorities for the productive discussions and for the arrangements to facilitate the visit. The team met with H.E. Minister of Finance Ali bin Ahmed Al Kuwari, other senior government officials, and private sector representatives.”
