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Emir of Qatar Says Global Economy to Shrink by a Third

Emir of Qatar Says Global Economy to Shrink by a Third

Wednesday, 22 June, 2022 - 06:30
Sheikh Tamim delivers a speech at the opening of the Qatar Economic Forum 2022. (QNA)

Emir of Qatar Sheikh Tamim bin Hamad Al Thani warned on Tuesday of a wave of global economic stagnation and inflation that the world has not seen in 45 years, citing a slowdown of growth in the global economy by about a third this year.


Speaking at the opening of the Qatar Economic Forum 2022, Sheikh Tamim said the economic forecasts indicating a slowdown of growth in the global economy could be a prelude to an inflationary recession the world has never seen since the period between 1976 and 1979, according to the world bank reports.


Back then, sharp rises in the interest rates to combat inflation led to the economic recession of the early 1980s.


International indicators


He said positive health indicators have risen after the lifting of coronavirus pandemic restrictions, recovery of trade flow, increase in public spending, and growth in global demand at all levels.


However, the confusion that has impacted the supply chains is still among the significant factors that are driving up prices, in addition to the devastating effects of the ongoing war in Ukraine.


"The pandemic has revealed the extent of the gap between the rich and poor nations and contributed to its expansion, especially during the faltering efforts to achieve development and reduce poverty," said Sheikh Tamim.


He called on the international community to adopt an approach to achieve equality in economic recovery between countries and save sustainable development goals.


Ukrainian crisis


Sheikh Tamim addressed the impact of the Ukrainian crisis and the rise in energy and grain prices, which have affected the global economy.


He warned of the immediate humanitarian repercussions resulting from the war in Ukraine on crises in Ethiopia, Yemen, and Syria, which "may immediately result in exposing hundreds of thousands of people to the risk of starvation."


He admitted that some issued had no economic solution, including the war and its devastating consequences on Ukraine and many other countries and peoples.


He proposed a politically-oriented solution, warning that the food crisis should neither be left to the law of supply and demand, nor should the issue of extreme poverty be left to developing countries to face alone.


Qatar's economy


Sheikh Tamim tackled economic growth in his country, saying Qatar's gross domestic product growth outlook in 2022 is forecasted to be 4.9 percent.


He attributed this growth to the rise in energy prices and the positive impact of the policies and procedures adopted by the government to support the economic sectors, boosting the private sector's production capacity and adapting to regional and global variables.


He recalled the measures taken by the authorities in economic diversification, noting that some legislative amendments were introduced to facilitate commercial transactions, bolster competition, protect the consumer, encourage the industrial and technological sector, support the national products' competitiveness and increase the foreign direct investment by allowing full foreign investors ownership of companies.


Sheikh Tamim noted that these efforts led to a significant increase in domestic and foreign investment volume in recent years, especially in foreign direct investment, which increased by 27 percent during 2021 compared to 2020.


"We hope this growth will continue to rise in the coming years in accordance with the adopted plans."


Qatari-Egyptian relationship


Meanwhile, Minister of Finance Ali al-Kuwari announced at the Forum that Qatar would continue its investments in Egypt, describing the relations between Doha and Cairo as "brotherly and historic".


He stressed that Qatar also wants to get investment returns in Egypt.


Egypt's Minister of Trade and Industry Nevine Gamea revealed that both countries are discussing ways of increasing investment volume and expanding them in new areas.


Qatar and Egypt agreed to launch a joint business council which will consist of businessmen who will work on boosting economic relations, investment, and trade between the two countries.


ExxonMobil


Meanwhile, QatarEnergy signed an agreement with the US company, ExxonMobil, to further develop Qatar's North Field East project, the world's largest liquefied natural gas (LNG) project.


The Qatar News Agency stated that ExxonMobil boasts a 6.2 percent share in the $30 billion North East Field expansion project.


Qatar, the world's largest exporter of liquefied natural gas, has partnered with several international companies to participate in the project, which will boost Doha's position as the biggest LNG exporter in the world.


The North Field expansion includes six LNG trains that will increase Qatar's annual LNG capacity from 77 million tons per year to 110 million tons by 2026, cementing its position as the world's largest producer.


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