Qatar Central Bank has published its 2025 Annual Macroeconomic Review, reporting real gross domestic product growth of 2.9%, supported by broad-based non-hydrocarbon expansion of 4.8%. The non-hydrocarbon sector increased its share of real GDP to 65.3%, while hydrocarbon output contracted by 0.5%. Inflation averaged 0.5%, real estate prices remained broadly stable, visitor arrivals reached 5.1 million and the Purchasing Managers’ Index averaged 51.2, indicating continued private-sector expansion despite weaker momentum late in the year. The current account remained in surplus at QAR 116.2 billion, or 14.8% of GDP, although lower exports reduced the surplus from 17.5% in 2024. Lower hydrocarbon revenue and higher spending moved the fiscal balance to a QAR 8 billion deficit, while domestic credit growth accelerated to 4.9% and official reserves rose to QAR 202.2 billion. Qatar Central Bank cut policy rates by a cumulative 75 basis points in 2025, with the reductions fully transmitted to overnight interbank rates. The review notes that the earlier 6.1% growth projection for 2026 preceded the escalation of regional tensions and identifies downside risks to hydrocarbon production, logistics, tourism and aviation, without providing a revised forecast.
2026-08-11Qatar Central Bank
Qatar Central Bank publishes 2025 review showing 2.9% growth driven by 4.8% non-hydrocarbon expansion
Qatar Central Bank reported 2.9% real GDP growth in 2025, led by a 4.8% expansion in non-hydrocarbon activity, while inflation averaged 0.5%. The current account surplus stood at QAR 116.2 billion, domestic credit grew 4.9% and policy rates fell by 75 basis points. Regional tensions create downside risks to the earlier 6.1% growth projection for 2026.