The World Cup 2022 has left a positive impression on the Qatar Economy, says the latest Purchasing Managers’ Index (PMI) survey by Qatar Financial Centre (QFC). The month of December saw rapid growth in business activities like in November. Wholesale, retail and service providers saw expansions in activity. The sectors also saw a record overall increase in prices charged for goods and services. The 12-month outlook for business activity became the highest since July 2020.
A panel of 450 private companies covering sectors such as construction, manufacturing, wholesale, retail, and services participated in the survey which indicates the structure of the non-energy economy. The Qatar Financial Centre PMI is derived from indicators for new orders, output, employment, suppliers’ delivery times, and stocks of purchases. The PMI rose from 48.8 in November to 49.6 in December, hinting at a near-stabilisation in overall non-energy private sector business conditions. December saw the non-oil private sector output rising for the thirteenth consecutive time. The data that shows growth in wholesale, retail, and services mirrors the continued impact of the FIFA World Cup Qatar 2022 on the economy.
Across 2022, the Output Index trended at 69.0, the highest annual figure in the survey history, compared with a long-run trend of 54.8. Although certain sectors such as construction experienced a pause, the respective index rose for the second month running in December from October’s 28-month low. Meanwhile, firms were able to reduce their outstanding business. December data showed a sharp rise in the wholesale and retail and services sectors due to tourism demand from the FIFA World Cup Qatar 2022.
Companies keenly optimised input stocks, which were reduced for the fifth successive month, and reported that they expect a positive legacy from the FIFA World Cup Qatar 2022. New projects are in the pipeline and companies believe the tourism sector will benefit from the football legacy. Qatar’s financial services sector also recorded a substantial rise in business activity in December 2022. Input prices paid by financial services companies rose only fractionally in December, while charges levied for services increased for the first time in six months. New business also grew at the strongest rate in four months. The employment rate also rose at the fastest pace since July.
