A strong double-digit growth in hospitality, transport and manufacturing sectors led Qatar's real (inflation-adjusted) economy to grow by a robust 2.7% year-on-year in the first quarter (Q1) of 2023, according to official estimates.
However, the real economy was seen shrinking 3.9% quarter-on-quarter during the review period as the last quarter of 2022 had witnessed FIFA World Cup, whose force multiplier on the local economy was substantial.
The mining and quarrying sector, under which hydrocarbons fall, grew 4.1% year-on-year and the non-mining and quarrying sector by 1.9% to place the overall real GDP (gross domestic product) at QR170.1bn. The agriculture, forestry and fishing sectors soared 6.1% on an annualised basis in Q1-2023.
On a quarterly basis, the country’s real GDP (at constant prices) during Q1-2023 was dragged mainly by 6.3% contraction in the non-mining and quarrying sector; even as mining and quarrying sector was up by a marginal 0.3%.
Within non-hydrocarbons, the accommodation and food service segment is estimated to have expanded 17.3% year-on-year in Q1-2023, followed by transport and storage by 16.8%, manufacturing by 10.8%, wholesale and retail trade by 9.1%, real estate by 6.1%, finance and insurance by 2.3%, and utilities by 0.7%.
However, the construction sector witnessed 12.5% shrinkage and information and communication by 7.9% in the review period.
On a quarterly basis, the information and communication sector plummeted 20.6%, finance and insurance (19.5%), wholesale and retail trade (16.1%), utilities (9.1%), realty (7.3%) and manufacturing (3.7%) in Q1-2023.
Nevertheless, the transport and storage sector registered a 7.2% expansion and construction by 1.5% in the review period.
On a nominal basis (at current prices), Qatar's GDP is estimated to have grown 1% year-on-year but tanked 8.7% quarter-on-quarter at the end of Q1-2023.
The non-mining and quarrying sector's 5% surge rather masked the 4.5% decline in the mining and quarrying sector that the overall nominal GDP growth remained in the positive track on an annualised basis in Q1-2023.
On a quarterly basis, both mining and non-mining sectors witnessed 11.9% and 6.3% contraction, thus leading to an overall decline in the nominal economy in Q1-2023.
Within non-hydrocarbons (in nominal terms), there was a 28.7% year-on-year surge in finance and insurance, 24.3% in real estate, 11.6% in transport and storage, 6.8% in accommodation and food service, 3.8% in utilities, 2.7% in information and communication, 2.6% in manufacturing and 2% in wholesale and retail trade in Q1-2023. However, there was an 8.2% contraction in the construction sector in the review period.
On a quarterly basis in nominal terms, the accommodation and food services segment saw a hefty 46.8% plunge, wholesale and retail trade (21.9%), information and communication (9.6%), manufacturing (5.2%), construction (4.9%), utilities (2.9%), realty (2.1%) and finance and insurance (0.9%) in the review period. However, the utilities segment saw a 2.3% jump in nominal terms on a quarterly basis in Q1-2023.
The import duties, on real terms, are estimated to have risen 2.8% and 1.4% year-on-year and quarter-on-quarter respectively at the end of Q1-2023. On nominal terms, they however reported a 3.9% and 5.7% contraction respectively in the review period.