In recent years, Qatar has emerged on the world stage as an economic powerhouse. Sitting atop the globe’s third largest natural gas reserves, the country’s enormous liquefied natural gas (LNG) expansion programme conducted over the past few years has fuelled its meteoric growth.
Ranked as the world’s fastest-growing economy in 2010, Qatar achieved a gross domestic product (GDP) growth rate of 18.5%. Its GDP is forecast to grow by a further 19% this year, driven by further expansion in LNG production, which is expected to peak at 77 million tonnes per year, compared to 30 million tonnes per year in 2008. The hydrocarbon sector accounted for 56% of nominal GDP in 2010, with this figure set to rise to 64% this year.
Over the next few years, hydrocarbons are set to account for a decreasing proportion of Qatar’s GDP; falling to just over half (51%) by 2016. But while growth tapers off in the hydrocarbon sector, Qatar’s non-hydrocarbon GDP is projected to grow in between 8% and 9% on the back of continued high government spending on infrastructure.
