Gross domestic product shrank nearly 4% on an annualized basis from the previous quarter, according to data from the Planning and Statistics Authority on Thursday. The year-on-year figure for the period was 2.7%.Prices for liquefied natural gas, of which Qatar is one of the world’s biggest exporters, have slumped around 55% this year after soaring in the aftermath of Russia’s invasion of Ukraine in February 2022.
Oil-related growth was mostly flat during the first quarter, with Qatar’s LNG volumes remaining steady. Non-oil activity contracted more than 6% on a quarterly basis. Analysts had flagged that Qatar’s economy would slow after last year’s boom, fueled by the rise in gas prices and the football World Cup. The government spent an estimated $300 billion on the event, a huge sum for the country of 3 million people.
Unlike Gulf neighbors that depend on crude oil, Qatar is more reliant on revenue from gas, though Qatar’s long-term contracts for the commodity are linked to crude prices.The International Monetary Fund expects Qatar’s economy to grow 2.4% this year.