Qatar revises 2015 outlook; expects 3.7% growth

Qatar slashed its GDP growth projection to 3.7 percent in 2015 from 7.3 percent on lower-than-expected oil prices and a contraction in the hydrocarbon sector, according to a report released by the Ministry of Development Planning and Statistics.

The report cites, “a combination of shutdowns and maintenance of production facilities, as well as declining output from maturing oil fields,” as the reasons for less hydrocarbon output.

However, the sector will get a boost in 2016 as the Barzan project comes on stream.

“A pick-up in the hydrocarbon sector would take output growth up to 4.3% in 2016 before it eases to 3.9% in 2017,” the report said.

Lower hydrocarbon revenue is expected to shave the 2015 surplus to 1.7 percent. This is expected to flip into a deficit of 4.8 percent in 2016, but retreat slightly in 2017 to 3.7 percent on a, “pick-up in oil prices and continued spending restraint,” the report added.