Qatar's trade surplus triples year-on-year in Q2: PSA

Asia remained the principal destination of Qatar’s exports.

Qatar's trade surplus almost tripled year-on-year in the second quarter (Q2) of this year as the country's exports grew much faster than imports, according to the official statistics. Asia remained the principal destination of Qatar’s exports and the first origin of imports as the country saw QR46.45bn trade surplus on trade volumes of QR96.02bn during Q2-2021, said the Planning and Statistics Authority (PSA) data. However, trade surplus had fallen 7.6% year-on-year to QR86.29bn in the first half of 2021 as exports were seen declining 27.9% to QR135.11bn and imports by 48.1% to QR48.82bn. In Q2-2021, the value of Qatar’s total exports (including exports of domestic goods and re-exports) amounted to QR71.14bn, which increased 88.1% and 11.2% year-on-year and quarter-on-quarter respectively. The yearly jump in total exports was mainly due to a 98.7% surge in the shipments of mineral fuels (QR29.1bn), 100% in chemicals and related products (QR3.8bn) and 62.1% in manufactured goods (QR0.7bn). On other hand, there was 42.1% decline in crude materials, inedible (except fuels) valued at QR0.04bn, and 14% in machinery and transport equipment (QR0.4bn). The value of Qatar’s imports in Q2-2021 was QR 24.78bn; which increased 11.2% and 3.1% on a yearly and quarterly basis respectively. The Q2-2021 year-on-year jump in imports values is mainly due to a 26.9% surge in the imports of machinery and transport equipment (QR0.9bn), 6.5% in machinery and transport (QR0.6bn), 14.9% in chemicals and chemical related products (QR0.4bn) and 48.8% in crude materials (except fuels) QR0.3bn and 9.1% in manufactured products. Nevertheless, there was 8.3% shrinkage in the imports of food and live animals, valued at QR0.2bn. The Asian region was the principal destination of Qatar’s exports and the first origin of Qatar’s imports, representing 72.3% and 39.7% respectively; followed by the European Union, accounting for 11.2% and 31.8% respectively; and the GCC (Gulf Co-operation Council), with 8.6% and 3.3% respectively. The trade volume and balance with Asia stood at QR64.25bn and QR41.58bn respectively, European Union (QR15.9bn and QR0.13bn), the GCC (QR6.95bn and QR5.33bn), and the US (QR4.65bn and -QR1.71bn) in in Q2-2021. Market sources said Qatar’s trade volume with the GCC has been on the increase after the resolve in the region and there is room for improvement with the inoculation drive gathering pace across the region. In its latest World Investment Report, the United Nations Conference on Trade and Development noted Qatar's “normalisation of relations with the three GCC members will improve investment prospects for Qatar specifically and likely to boost intraregional flows.” An International Monetary Fund paper had earlier said given that low intra-GCC trade is mostly due to similar economic structures of the member countries, the greater regional trade can be boosted by diversifying the economy toward tradable goods. In Q2-2021, the trade volume and balance with Oceania amounted to QR1.07bn and QR0.06bn respectively; Africa (except Arab countries) QR0.79bn and QR0.51bn; other American countries were QR2.25bn and QR0.93bn); and other Arab countries were QR0.91bn and -QR0.04bn. The trade balance and volume of Qatar with other countries not specified amounted to QR0.5bn respectively in the review period.