Qatar Achieves Fastest Non-Energy Business Growth In Nearly 2 Years
Qatar experienced its fastest non-energy growth in nearly two years this June, with significant increases in both existing and new business activities. Employment also rose for the 16th consecutive month as companies expanded, maintaining a strong 12-month outlook for the country.
The Purchasing Managers' Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May. A PMI above 50.0 indicates growth in business activity. This marked the strongest improvement in business conditions for the non-energy private sector since July 2022 and was above the long-term trend.
Incoming new work saw its sharpest increase in 13 months, with notable growth in manufacturing and construction sectors. Other sectors also experienced significant expansion, according to a report by the Qatar Financial Centre (QFC). Despite rising demand, companies managed to reduce outstanding work volumes further in June.
Inflationary pressures remained low, with input prices rising only slightly since May. Prices charged for goods and services fell for the sixth time in eight months as firms offered discounts to stay competitive and attract new customers.
Qatari financial services companies reported continued growth in total business activity and new contracts in June. The seasonally adjusted Financial Services Business Activity Index rose to a 13-month high of 61.1, while the New Business Index reached a nine-month high of 59.2, both surpassing their long-run trend levels since 2017.
"Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023," said Yousuf Mohamed Al-Jaida, CEO of QFC.
Companies linked their positive forecasts to factors such as new branch openings, acquiring new customers, and effective marketing campaigns. This optimism contributed to a robust outlook for the next year.
The headline PMI figure indicated an overall improvement in business conditions within Qatar's non-energy private sector economy. This was reflected by faster growth rates across various sectors and a reduction in outstanding work volumes despite increased demand. The QFC report highlighted that inflationary pressures were muted, with only slight increases in input prices since May. The prices charged for goods and services continued to fall as businesses aimed to enhance competitiveness through discounts.
The consistent rise in employment over the past 16 months underscores companies' confidence and expansion efforts within Qatar's growing economy. The data suggests that Qatar's non-energy sector is on a solid growth trajectory, driven by increased business activities and strategic initiatives aimed at capturing new market opportunities.
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