Qatar’s economy expected to show a steady 4% growth until 2019

Qatar's economy will grow at about 4% during 2016-2019, keeping pace with growth over the last four years, global credit rating agency Standard & Poor's (S&P's) has said in its latest report.

The GDP growth rate reflects S&P's view that Qatar's economy will remain resilient despite expert forecasts, the Qatar Tribune reported.

With public sector capital investment contributing significantly to growth under Qatar's $125bn infrastructure investment programme, the rating agency has also affirmed its 'AA' long-term and 'A-1+' counterparty credit ratings on Qatar with 'stable' outlook.

"Qatar is a wealthy economy. The country holds the third-largest proven natural gas reserves in the world," the report said.

"Qatar is the largest exporter of liquefied natural gas (LNG). We expect Qatar's reserves to provide many decades of production at the current levels."

Estimated at $59,245, Qatar's GDP per capita in 2016 is among the highest in the world.

Regarding the hydrocarbon sector, the rating agency expects that new production and refining facilities coming online over the next couple of years will also support manufacturing activity.

"We don’t expect a steep change in production and the hydrocarbon sector will likely remain at broadly similar levels of output, albeit with some increase in gas output expected from 2017," the rating agency said.

The moratorium on new projects in Qatar's North Field will continue and will be reviewed only once gas prices begin to recover in the medium term."

The oil and gas industry in Qatar will remain profitable as the country has one of the lowest costs of natural gas production ranging $1.60 to $2 per million British Thermal Units.

"Moreover, the majority of its gas exports are under long-term contracts, which provides some certainty regarding the volumes sold. We expect that Qatar will maintain its cost advantage over many new projects in other countries," the report said.