As the Qatari economy continues to remain stable despite the recessionary pressure mounting worldwide, business optimism improves further amid increasing expectation of a global economic recovery, stated a key study.
The downward pressure on selling prices will subside while the hydrocarbon sector will remain uncertain on recent oil price rally, as was revealed in the D&B Business Optimism Index (BOI) for Qatar for the Q3 2009;
The BOI survey was conducted against the backdrop of crude prices rallying to their seven-month high in the range of $70 per barrel with expectations of rising demand for oil and signs that the global economy has started to come out of recession. According to the IMF, the Qatari economy is estimated to register one of the highest growth rates in the world in the current year, a real GDP growth rate of 18 percent, primarily backed by the natural gas segment of the hydrocarbon sector.
The government’s 2009-10 expansionary budget of QR94.5bn has made large allocations for strategic infrastructure development projects to help the Qatari economy maintain its growth momentum. The BOI report revealed further that the sentiments in Qatar are improving on the back of growing expectations of a global economic recovery.
“The world economy has shown signs of stabilising in recent months indicating that the measures taken by governments across the world have started bringing benefits. In line with global events, the Qatari business community shows a positive outlook for the third quarter and is expecting the demand levels to improve,” said D&B South Asia and Middle EAst CEO Rajesh Mirchandani.
Mirchandani said this quarter reveals a significant improvement in the number of business units expecting increase in their sales volume. “Also the downward pressure on prices seen in the last quarters also seems to be subsiding. However, availability of finance remains a key cause of concern for a large number of businesses”