Peninsula - 2/7/2006

The Qatari economy grew by 8.4 per cent in the first quarter of this year as compared to the previous quarter that ended on December 31, 2005.

According to figures released by the statistics department of the Planning Council yesterday, the country's gross domestic product (GDP) was QR45.26bn in the first quarter (Q1) of 2006.

The growth over the first quarter last year was an impressive 17.9 per cent. The main driving force of the economic growth was higher oil and gas prices in the international markets, the Planning Council said.

The share of the energy (oil and gas) sector in the GDP during Q1 this year was QR27.18bn, representing a growth of 3.8 per cent over the previous quarter (October 1 to December 31, 2005).

As compared to Q1 of 2005, the growth was an incredible 33.6 per cent, said the Planning Council. The oil and gas sector accounted for a massive 60 per cent of the GDP.

“The energy sector continues to be the mainstay of the national economy,” the Council noted.

The financial services, real estate and construction sector showed growth, too, in Q1 of this year with the increase being 4.8 per cent over the previous quarter. The increase was in the double digits at 12.9 per cent as compared to Q1 of last year.

The construction sector individually grew by 1.06 per cent in the first quarter over the previous one with a share of 5.3 per cent in the overall GDP. The rise over Q1 last year was an impressive 15.6 per cent.

The other sectors of the economy also showed growth ranging from one to six per cent in Q1 this year, said the Planning Council.

The GDP was QR153.29bn at the end of last year with the growth being 33.3 per cent, according to figures released by the Planning Council early last month.

Going by the size of the GDP in Q1 this year and the growth rate of 8.4 per cent, the GDP can easily cross QR180bn mark by the end of the year.