The second quarter of the country’s GDP witnessed its lowest drop since eight years, according to a report.
The Planning and Statistics Authority estimated the drop, the lowest in eight years and a stark contrast from last year’s 1 percent decrease.
The figures were blamed on the significant hit to the economy that came with the coronavirus pandemic within the second quarter of this year. According to Bloomberg, sectors that struggled the most under the coronavirus restrictions included transportation, warehousing, retail trade, and leisure.
The predictions came as the International Monetary Fund expected Qatar’s GDP to fall by 4.5 percent this year, outperforming its neighbours in the Gulf region.
With tourism being particularly hit by COVID-19, Qatar Airways said this year has been one of its most difficult years due to the financial losses. The airline had recorded QAR 7 billion in losses up until March 31.
Qatar Airways has received QAR 7.3 billion in government aid to help the national carrier through what has been the most difficult period for the aviation industry.
At the start of the pandemic in March, Amir Tamim bin Hamad Al Thani provided the business sector with an economic boost of at least QR 75 billion to curb the effects of the health crisis.
But on the positive side, Qatar’s GDP may scale up to $208 billion in 2024 from $162 billion this year, an increase of almost 30 percent over four years, according to FocusEconomics, a leading provider of economic analysis and forecasts.