Qatar's economy is expected to surge by 15% in 2027, according to S&P Global Ratings, as the country recovers from disruptions in its gas sector. This projected rebound follows a steep 14% contraction predicted for this year, driven by damage to two of Qatar's 14 liquefied natural gas (LNG) export trains after Iranian strikes. The incidents removed 12.8 million tonnes of annual capacity from the market, with repairs estimated to take three to five years.
Despite ongoing challenges, S&P anticipates that the North Field expansion will proceed, albeit with delays, significantly boosting Qatar's energy sector. The agency highlighted increasing demand from Asian economies and LNG's role as a transitional fuel in the global energy shift. However, it warned that prolonged disruptions to LNG production and exports remain a key risk.
Government revenue plummeted 42% in the first half of this year due to the drop in LNG exports, Emir Sheikh Tamim reported. S&P maintained Qatar's AA sovereign credit rating, citing the country's substantial fiscal and external assets, which will help it navigate security and trade disruptions tied to the Middle East conflict. Inflation is expected to rise modestly to about 4%.
Separately, S&P downgraded Meta Platforms' outlook to negative, expressing concerns over the company's cash flow and its ability to monetize AI investments. Analysts noted that Meta's peers are already generating revenue from data center investments, while Meta's revenue streams from AI remain uncertain.