COMMITTEE: International Monetary Fund (IMF)

COUNTRY: Qatar
AGENDA: South Asia- Economy and Future

Unlike the European nations and western countries, Qatar continues to lag behind and are not
able to keep up with pace in terms of Economy and its Future. The central government budget
continues to post large surpluses. The current account recorded a surplus of 32 percent of GDP
in 2012 and another high surplus can be expected in the future. These reflect sustained high
prices of LNG, Crude Oil, and condensates exports.
Monetary and credit conditions have remained accommodative, but public sector credit growth
has slowed substantially. Accommodative monetary policy in the United Stated has been
mirrored by low policy rates in Qatar. The country still remains exposed to several global risks
such as, the possibility of a sharp decline in oil and gas prices in light of growing unconventional
oil and natural gas supplies.
Qatar's macroeconomic performance has remained strong. GDP growth slowed from 13 percent
in 2011 to 6.2 percent in 2012, largely as a result of the long-standing self-imposed moratorium
on additional hydrocarbon production from the North Fields. Inflation increased last years has
been decreased back from 3.7 percent to 2.3 percent.
The Authorities have made some progress in developing the institutional structures needed for
efficient implementation of the National Development Strategy, such as the establishment of the
Central Planning Office overseeing infrastructure investments. Qatar will still be facing risk of
cost escalation given its commitment to a compressed timetable ahead of the 2022 Fifa World
Cup.

In order to improve Economy and Future, Qatar recommends the following:

1. Start exporting goods, such as Oil and Natural gas not just to the western countries but to all
over the world so the price does not fall.
2. It can raise its interest rates to try to prevent further declines in the values of its GDP.
3. Systematic record of all economic transactions with the residents of a foreign country must be
kept, thus a balance of payment can be maintained.