In 2008, Index of Economic Freedom ranked Qatar as the world's 66th freest economy. Qatar is a major producer of natural gas. Oil and gas generates maximum revenues for Qatar's economy. Current focus of Qatar is on off-shore petroleum and economy diversification.
Economic freedom in Qatar
Qatar's economic strength lies in low corruption levels and fiscal freedom. Qatari nationals do not have to pay personal or corporate taxes. Qatar also scores in areas like property rights and government size. But Qatar's economic freedom is hampered by low investment freedom.
Qatar GDP
In 2007, GDP of Qatar stood at around $71.42 billion. That was about an 8.4 percent increase in GDP growth rate over previous year GDP figure. In 2007, GDP per capita was about $87,600. Sector-wise breakup showed that industry accounted for more than 75 percent of Qatar's GDP.
Inflation
Average inflation in Qatar hovered around 10.6 percent between 2004 and 2006. In 2007, inflation was estimated to be about 13.7 percent.
In 2007, Qatar imports were worth nearly $20 billion. Major import commodities for Qatar included machinery, food, chemicals, and transport equipments. US and Italy accounted for more than 20 percent of Qatar's imports. Other import partners for Qatar included Japan, France, Germany, UK, and UAE.
In 2007, Qatar's total exports amounted to $42.02 billion. Liquefied petroleum gas, petroleum products, steel, and fertilizers, were major commodities exported from Qatar to other countries. Major export partners for Qatar were Japan, Singapore, India, Thailand, and UAE.
Weaknesses
Low investments form a critical weakness of Qatar's economy. Matters related to employment of Qatari nationals and investment by foreign companies, are controlled by government regulations. High inflation is another area of concern for Qatar's economy. Human trafficking also contributes to Qatar's economic weaknesses.
Future of Qatar
Recent economic boom in Qatar augurs well for the nation. Export of oil and natural gas continues to be a dominant source of revenue for Qatar government. High oil prices have helped Qatar fund its national budget. Economic future of Qatar is likely to be dependent on how it utilizes its high natural gas and oil reserves.