Qatar external, fiscal balances to show marked improvement this year: IIF

Qatar external, fiscal balances to show marked improvement this year: IIF:

Qatar’s external and fiscal balances are expected to show marked improvement this year despite the ongoing economic blockade and growing emerging market stress, according to a US-based economic think-tank.

Although the diplomatic rift with the Saudi-led bloc is well into its second year and shows no signs of abating, economic activity has continued to pick up in Qatar, said the Institute of International Finance (IIF).

Qatar's fiscal balance is on track to return to a surplus for the first time since 2015 and remain in surplus next year. Higher hydrocarbon prices are the major driver for 2018, while non-hydrocarbon revenues are likely to increase in 2019 with the scheduled introduction of a comprehensive value added tax (VAT).