Qatar Economic Outlook Issue Number 13

Part 2 - Economic Performance 2017 - 2020 
 
55 
expenditures by about 12.5% in 2020 
compared to what was actually spent in 2019. 
Most of the decrease came from reducing 
capital expenditures by 21% for several non-
crucial capital projects, those that have 
nothing to do with completing the 
infrastructure necessary to host the 2022 
FIFA World Cup. Likewise, non-essential 
current expenditures, including allowances 
related to salaries and wages, were reduced 
by about 7%. 
In light of the relative stability of the volume 
and value of merchandise imports, 
merchandise exports play a pivotal role in 
determining the level of the net trade 
balance, and therefore the current account, 
whether as a surplus or as a deficit, as shown 
in Figure (2-6). For example, when the share 
of merchandise trade balance which is driven 
by hydrocarbon exports as a percentage of 
GDP declined from 27.8% in 2018 to 18.8% 
in 2020, the current account posted a deficit 
of about negative 2.5% of GDP. It is striking 
that one of Covid-19 repercussions is the 
decline in the percentage of current transfers 
abroad from 9.4% in 2019 to 8.6% in 2020, 
most of which represent the returns of 
expatriate workers. This is attributed to the 
decrease in the incomes of some segments 
of non-Qatari employees.
With the rise in oil and gas prices during the 
first three quarters of 2021, merchandise 
trade balance as a percentage of GDP 
increased from 18.8% in 2020 to 33.3% in 
September 2021, causing the current 
account to achieve a significant surplus 
during the same period, for example reached 
16% of GDP in Q3.
Figure 2-5: Balance of Current Account and 
Public Finance 
)%( 
27.8
18.8
33.3
0
10
20
30
40
50
60
70
80
-10
-5
0
5
10
15
20
25
30
35
40
2017
2018
2019
Q1
Q2
Q3
Q4
2020
Q1
Q2
Q3
Annual
2020
2021
U
S$
/B
ar
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l
As
%
o
f G
D
P
Brent price (R-axis)
Trade Balance
Public Finance Balance
Soruce: MOF and prepared by PSA