Qatar’s economy contracted by 1.4 percent in the second quarter from a year earlier, according to government statistics, hurt by a drop in the manufacturing and construction sectors.
Gross domestic product (GDP) also contracted by 0.9 percent in the second quarter compared to the first, based on constant prices, the data showed.
The manufacturing sector declined 7.4 percent, while construction fell 3.5 percent, data from
Qatar’s Planning and Statistics Authority showed.
Credit agencies have warned banks in Qatar against financial exposure, especially in the real estate sector.
Fitch Ratings, a global leader in credit ratings and research, said in May that the real estate sector was hit by excess supply linked to preparations for the World Cup 2022, as this has led to a 20 percent decline in rental prices in the last three years.
Fitch expects government debt to jump to 63 percent of GDP in 2019 from 59 percent in 2018 despite the fiscal surplus.
Qatar's economy declined in the second quarter of this year to $55.1 billion, compared to $55.9 billion in the same quarter of 2018, a quarterly decline of 0.95 percent.
Mubasher Agency said Qatar's tourism revenues fell 5.1 percent in the first half of this year compared to the same period last year. The agency based its analysis on information from the Qatar Central Bank.
It disclosed the shrinking balance of payments surplus in Qatar during the second quarter of 2019 by 43.6 percent at $4.5 billion, compared to $8 billion in the same quarter of 2018.