The economy of oil and gas exporter Qatar — the world’s wealthiest country per capita — will grow a breathless 20% in 2011, the International Monetary Fund (IMF) said on Wednesday.
“Qatar has weathered the global financial crisis exceptionally well, reflecting the swift and strong policy response by the authorities,” the IMF said about the country of 1,7-million people.
“Growth has rebounded to 16% in 2010 and is projected to accelerate to 20% in 2011.”
The small Gulf monarchy, which beat out world football powers to be chosen as host of the 2022 World Cup late last year, will face a rising tide of inflationary pressure, though likely not more than it can manage, the fund said.
Remarkably, the 2010 surge was accompanied by a downturn in prices, rather than the inflation that normally accompanies such rapid expansion.
“Inflation is not viewed as an issue of concern in the short term, mainly because of the current excess supply in real estate,” the IMF said.
However, it warned that inflation would pick up to 3% this year.
“Aggregate demand needs to be carefully monitored in order to avoid the emergence of inflationary pressures.”
Based on a measure of comparative purchasing power, Qatar’s economy became the wealthiest in the world per capita last year, at $88 233 per person, surpassing Norway and Luxembourg.
GDP per capita on the same basis should top $100 000 this year, according to the IMF, with Luxembourg a distant second at $82 573.