In its latest report Qatar National Bank (QNB Capital) said that Qatar is the fastest growing economy in the world with a compounded average real GDP of 15.7 % during 2006-10.

According to QNB Capital, large investments made by the State in the natural gas and other sectors have ensured rapid growth and diversification of the economy.

QNB Capital forecasts that Qatar will continue to be the fastest growing global economy in 2011 with an estimated real GDP growth of 21.0 %. The forecasts are based on further expansion in natural gas and related sectors as well as the non-oil and gas sector.

The oil and gas sector will be one of the main driving forces for GDP in 2011 with an expected growth of 29.5 %. The key individual driver within this sector will be natural gas, which is expected to witness a substantial growth in 2011 with LNG (Liquid Natural Gas) production capacity already reaching 77mn tonnes, from 62mn tonnes in 2010. The production will reach 685,000 barrels per day (bpd) in 2011, from 396,500 bpd in 2010.

Also supporting growth for the economy is the crude oil sector with an average estimated production of 800,000 bpd in 2011 from 780,000 bpd in 2010.

The non-oil and gas sector is expected to grow by 14.1 % in 2011, driven mainly by manufacturing, financial services and a rebound in the construction sector. Manufacturing will get a major boost with extensive expansion in petrochemicals. Sound monetary policy will help both the financial services sector and the construction sector, as lower interest rates will support credit growth, QNB Capital said.

Further the government´s commitment to spending and economic stimulus will form a back-bone of confidence for the private sector. Projects with an estimated value of $ 185bn are expected to be carried out in the coming ten years.

This along with strategic external investments by the State will provide additional diversification opportunities and sustain economic growth for many years to come, the report said.

Source: Gulf Times 21st August 2011