Qatar Economy Shrinks 7% in Q1 Due to Iran War Disruptions

Qatar's economy contracted in the first quarter of this year due to disruptions in hydrocarbon production and exports caused by the Iran war. The country's gross domestic product fell to QAR171 billion ($47 billion) in the three months to March 31, a year-on-year drop of 7 percent.

The mining and quarrying sector, which accounts for 29 percent of GDP, was particularly affected, dropping 26 percent year on year to QAR49 billion. In contrast, non-mining and quarrying activities, which account for 71 percent of GDP, rose 3.5 percent to QAR122 billion.

The construction sector grew 6 percent, followed by financial and insurance activities (5 percent) and real estate activities (0.7 percent). Despite the challenges posed by the conflict, Qatar's National Planning Council secretary general, Abdulaziz Al Khalifa, pointed out the strength of the country's institutions, fiscal management, and strategic investments.

The council plans to publish estimates of second-quarter GDP by September 30, which will show the continuing impact of the conflict on the economy. The Iran war has also disrupted Qatar's liquefied natural gas exports, with strikes in March knocking out nearly 17 percent of export capacity, resulting in estimated annual revenue losses of $20 billion.