Spectacular growth shows Qatar is on track

Higher energy output and prices propelled Qatar's economy to 21 per cent nominal growth nominal in the third quarter of last year.

Higher energy output and prices propelled Qatar's nominal GDP up by 21 per cent in the third quarter of last year compared with the same period a year earlier.

The spectacular expansion rate emphasised the country's emergence as a standout economic performer regionally and globally.

"Stripping out energy, things are still much more subdued but we expect to see domestic demand picking up pace this year and beyond," said Liz Martins, a senior economist for HSBC Middle East.

Nominal GDP, which does not take inflation into account, last year surged to 111.25 billion Qatari rials (Dh112.23bn), compared with 91.85bn rials in the same period of 2009, according to data released yesterday by the Qatar Statistics Authority (QSA).

Driving growth was the mining and quarrying sector, which includes the oil and gas industry and accounts for more than half of the economy.

Expansion of 36 per cent was recorded within the sector last year compared with 2009.

"The noticeable jump in the liquefied natural gas [LNG] production during the third quarter of 2010 compared to the second quarter of 2010 was one of the major factors of recovery in the economy in third quarter," said the QSA in a report on its website.

Higher energy prices also bolstered the economy, said Ms Martins. Qatar has established itself as the world's biggest producer of LNG - gas cooled to a liquid state and shipped by tanker. Substantial rises in output came on stream last year and there will be further production increases before 2015, it is planned.

Other components of the economy also expanded in the third quarter over the secnd quarter of last year: manufacturing grew 3.4 per cent; with the electricity and water sector increasing 8.8 per cent; construction picked up 1.9 per cent; finance, insurance, property and business services expanded 16.7 per cent; while growth of 18.9 per cent was recorded within transport and communications.