Oxford Economics Predicts Gradual Decline in Qatar's Gross Government Debt to GDP Ratio

Qatar, 14 August, 2024 :  Oxford Economics forecasts that Qatar's gross government debt as a percentage of GDP will decrease to 40.4% this year and 35.4% by 2027. Debt levels are projected to be 38.8% in 2025 and 36% in 2026.

The report attributes this positive trend to a significant reduction in Qatar’s external debt, which had risen from 2013 to 2021 due to heavy investments but started to decline last year. This is offset by Qatar’s substantial foreign assets, including over $40 billion in official reserves, current account surpluses, and favorable borrowing conditions due to high credit ratings.

Qatar Investment Authority (QIA) has invested surplus funds abroad in various sectors to reduce dependence on oil and gas revenues. With assets exceeding $300 billion, QIA aims to diversify the economy.

The report highlights Qatar's rapid GDP per capita growth, making it the wealthiest country in the world, alongside its advanced welfare and education systems. Significant investments in LNG projects, gas-to-liquids, petrochemicals, and infrastructure, including the $200 billion spent partly for the 2022 FIFA World Cup, have driven economic growth and diversification.

Qatar is also emerging as a key regional financial and educational hub, aligning with its National Vision 2030.

Source : www.zawya.com