Qatar, 15 October, 2024 : According to Oxford Economics, Qatar's non-energy sector is expected to strengthen and grow by 2.4% this year, up from 1.1% in 2023. The sector showed signs of improvement, with year-on-year growth rising to 1.7% in Q4-2023, compared to an average of 0.8% in the previous three quarters.
Mixed performance was noted across various sectors at the end of last year. Positive trends in wholesale and retail, as well as hospitality, were countered by declines in administrative services, finance and insurance, and information technology.
The Purchasing Managers' Index (PMI) indicated continued improvement in business conditions, rising to 53.1 in August, up from 51.3 in July. Stronger growth was observed in output and new orders, while employment reached a near-record high.
Despite a sixth consecutive year-on-year decline in the industrial sector as of July, pressures are easing outside of plastics and cement production. Tourism is seen as a key driver for non-energy activities, with foreign arrivals nearing 3 million as of July, on track to meet the forecast of 4.5 million overnight visitors for the year.
Oxford Economics also noted unchanged inflation forecasts of 0.9% for 2024 and 1.8% for 2025, with headline inflation rising to 1.2% in August, primarily due to increased prices in communications, recreation, and hotels. Rising wage pressures are expected to contribute to higher output prices and inflation into 2025.
Source : www.zawya.com
