Qatar to remain fastest growing GCC economy

Qatar will remain the fastest growing of all GCC sovereigns in 2013, driven by the government’s huge capital investment programme. The growth is set to boost as the fiscal stimulus would be triggered by a combination of healthy rates of bank lending and buoyant consumer and business confidence, Fitch Ratings forecast yesterday.
In its first quarterly “GCC Sovereign Credit Overview”, however, the ratings agency noted economic growth in the GCC will slow in 2013 due to a moderation in oil production growth, but high oil prices will provide a supportive backdrop for another year of solid non-oil growth. Many governments in the region will continue to use high oil revenues to stimulate their economies
In the non-rating action commentary on Qatar, the Fitch noted gas output hitting capacity has caused headline economic growth to slow to mid-single digits. Qatar’s high government capital spending on major multi-year projects continues to stimulate the non-hydrocarbon sector.

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