The Group Securities: Overview of Qatari Economy Statistics in August 2018

Stock index and trade surplus improve, while population climbs and inflation stabilizes

September 4, 2018

The Group Securities presents figures of the Qatari economy as reflected in the data available by the end of August 2018. Data includes population and inflation figures, Qatar Stock Exchange Indices, oil prices in relation to the approved price in the public state budget, and the banks’ consolidated balance sheet. The illustrative infographic sums up the key economic data to present a snapshot of the economic situation prevalent till the end of August compared to the previous two months – except for some data relating to July only.

1-      By the end of August, local population increased – due to the return of expatriates from their annual leaves - by about 120,000 people to a total of 2.56 million, compared to 2.45 million at the end of the previous month of July. On an annual basis, the populace increased by 4.9%, compared to 2.44 million by the end of August 2017.

2-      QSE’s General Index rose by 61 points to settle at 9886 points by the end of August. Although, the total value of traded shares decreased by QR1.3 billion to QR3.18 billion, the total capitalization increased by QR6.4 billion to QR546.3 billion by the end of August, and the P/E ratio climbed to a multiple of 13.74, and by an average multiple of 13.90 in every month of August.

3-      U.S. Dollar exchange rate increased slightly - along with the Qatari Riyal - against the Euro to the level of US $1.17 per Euro by the end of August, and dropped against the Yen to ¥110.98 per U.S. dollar.

4-      The price of Qatar's onshore oil dropped by about US $1.25 to hit US $74 a barrel in August. In the middle of August, the price per barrel remained above the 2018 budget price by about US $29 per barrel.

5-      Inflation data for August has not yet been released. July’s data, on the other hand, showed inflation increasing by 0.2%, from 0.1% recorded in the month of June. Changes in subgroups were as follows (compared to the same month in 2017): telecommunication decreased by 11.9%, food and beverages dropped 3.4%, housing and fuel decreased by 2.9%, entertainment and leisure dropped by 0.2%. In contrast, transport increased by 7.8%, health by 4.3%, clothing and shoes climbed by 3.2%, furniture and appliances by 2.7%, restaurants and hotels rose by 1.8%, education by 0.9%, while miscellaneous goods and services surged by 0.9%.

6-      Trade Balance data for August has not yet been released. July’s data however showed a trade surplus of QR16.9 billion, an increase of QR5 billion, or 42.7% compared to the same month from 2017, and a decrease of QR1.1 billion or 6.1% compared to the previous month of June.

7-      Banks’ consolidated balance sheet for August has not yet been released, but that of July showed a drop of QR4.9 billion in the total assets to QR1387.3 billion; and the decrease of the total government and public sector credit, including bonds by QR19.5 billion, settling at QR464.5 billion. The private sector credit increased by about QR4 billion to the level of QR503.4 billion.