Qatar has raised its economic growth forecast for next year, anticipating robust growth in the non-oil and gas sector, the General Secretariat for Development Planning (GSDP) said Sunday.

The gross domestic product is now expected to grow 4.8 percent in 2013, up from the June forecast of 4.5 percent. Growth for 2012 is estimated at 6.3 percent compared with previous forecast of 6.2 percent.

The drivers of growth in the economy are now firmly located in the non-oil and gas economy, said Saleh Al Nabit, Secretary General of GSDP. In the years ahead, the economy will continue to see steady rise in the share of non-oil and gas economy in total output and with this shift, there will also be less fiscal dependence on oil and gas revenues, the official added.

According to the latest outlook report, growth in the non-oil and gas economy will be 9.3 percent in 2012 and 9.6 percent in 2013.

The report pointed out that inflationary pressure remained mild in 2012. However, it noted that a rising population, demand and residential rents could push inflation higher in 2013. Consumer price inflation in 2013 is tipped to be about 3.5 percent, higher than 2-3 percent forecast in June.

Both fiscal and current account surpluses are expected to remain robust, with the fiscal surplus for 2013 revised up to 5.4 percent of GDP from June's estimate of 4.8 percent. The upward revision can be attributed to estimated prices for gas, stimulated by Japanese demand.

The GSDP noted that the risks faced by Qatar's economy are still mainly external. "Problems in the Eurozone continue to pose a wider threat, and if geopolitical developments interfered with Qatar's ability to freely ship its oil and gas cargos, this would be economically harmful," the government agency said.

RTTNews