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LoginFinancial Analyst to QNA: Qatari Investments Enhance Economy's Resilience Against Global Fluctuations
Doha, May 13 (QNA) - Qatari investments abroad seek to adapt to economic changes by diversifying their investment portfolio and expanding their presence in multiple strategic sectors, most notably technology, within markets that extend across the United States, Europe and Asia.
This approach has contributed to strengthening financial stability and sustainable growth, along with providing stable returns that mitigate the impact of energy market volatility and support the national economy's ability to cope with a global economic environment in which geopolitical factors intersect with monetary policies and energy markets.
In this context and in an exclusive statement to Qatar News Agency (QNA), financial analyst Ali Al Mulla, said that the local economy continues to maintain its relative stability despite the challenges and rapid regional and international changes, noting that the indirect repercussions of the current tension in West Asia have begun to be reflected in energy and shipping markets and global supply chains, adding further pressure on the international economy in an environment characterized by high financing costs and tight monetary policies.
Al Mulla indicated that the Qatari economy enjoys a high degree of resilience compared to many other economies, benefiting from strong financial surpluses and continued global demand for liquefied natural gas (LNG), in addition to the expansion of the North Field, which aims to raise production capacity from about 77 million tons per year to nearly 126 million tons in the coming years, enhancing public revenues and supporting sustainable growth.
The strength of the energy sector in the State of Qatar, particularly the production capacities in the field of LNG and future expansion plans, contributes to strengthening the national economy and supporting its financial stability, which allows for greater scope to finance development projects and to face global economic fluctuations without significant financial pressures, he added.
He pointed out that Qatar Investment Authority (QIA) plays a pivotal role in absorbing economic shocks by diversifying investments globally and providing stable returns that support public finances and reduce the effects of energy market fluctuations.
Al Mulla stressed that the resilience and strength of the Qatari economy enable it to seize opportunities and deal with challenges, despite the international Monetary Fund (IMF) lowering its forecast for global economic growth in 2026 to about 3.1 percent compared to 3.4 percent previously, in parallel with expectations of continued global inflation at levels close to 4.4 percent, reflecting the continued imbalance between growth and prices.
The fluctuations in oil prices between USD 100 and USD 120 per barrel, along with the sensitivity of maritime routes such as the Strait of Hormuz have contributed to increased uncertainty, prompting major central banks to adopt more cautious monetary policies, with interest rates remaining at high levels approaching 5 percent in some major economies, and the prospects for monetary easing declining, amid rising bond yields and increasing borrowing costs globally, which has negatively impacted investment and growth, he added.
In light of these challenges, there are growing fears of a global economic slowdown that could approach partial recession levels if energy prices remain at their high levels, amid rising possibilities of a "stagflationary" scenario that combines weak growth with persistently high prices, which is one of the most complex scenarios in managing the global economy.
Al Mulla affirmed that inflation rates remain within acceptable levels in a number of markets, pointing out that continued geopolitical tensions may put pressure on the global economy in the coming period, especially with rising transportation and marine insurance costs, increasing uncertainty related to international trade and supply chains, and the sensitivity of energy markets to any disruptions in vital sea lanes.
He also indicated that the current inflationary pressures are due to a combination of overlapping factors, most notably geopolitical tensions, rising oil prices, and disruptions to global supply chains. The financial analyst explained that the impact of oil prices is not limited to the energy sector alone, but extends to the costs of industrial production, transportation, food and logistics, making it a key element in shaping global inflation trends, with continued concerns about the return of inflationary waves in a number of major markets.
Recent global economic data indicates that inflationary pressures persist in some advanced economies, despite interest rate hike policies, with the impact of these policies varying across sectors, as inflation slows in some basic commodities while remaining high in the energy and services sectors, he noted, adding that the economic effects may become more apparent during the coming winter as energy demands rises, potentially leading to further increases in production costs, and escalating inflationary pressures on consumers and markets in both developed and emerging economies.
Al Mulla emphasized that the continuation of these factors could reshape the global pricing environment and increase the likelihood of new inflationary waves, particularly in advanced and import-dependent economies, despite central banks' efforts to contain inflation by raising interest rates.
The global economy is witnessing a shift towards what can be called the "indirect economy," where economic indicators no longer move according to traditional supply and demand, but are affected by political, security and technological factors, such as wars, sanctions and the artificial intelligence race, which has become an influential element in reshaping global investment flows, Al Mulla added.
In light of these developments, the global economy is heading towards a more complex phase than a mere traditional slowdown, as geopolitics, energy, and monetary policies have become crucial factors in determining the path of growth.
While uncertainty continues to dominate the landscape, the ability of countries to adapt and absorb shocks is of paramount importance, which gives economies like Qatar relative resilience thanks to the strength of the energy sector and investments. (QNA)
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