Qatar's Non-Oil Private Sector Enters a Phase of Contraction in March Affected by War Conditions

SadaNews Economy - The non-oil private sector in Qatar has entered a clear state of contraction during March, influenced by the repercussions of regional conditions related to war. A recent report showed that the Purchasing Managers' Index sharply declined to record 38.7 points, compared to 50.6 points in February, marking the lowest level since the COVID-19 pandemic in 2020.

Overall business activity recorded the largest decline since May 2020, while new orders saw a record drop during the same month, reflecting a widespread decrease in domestic and external demand levels. Qatari companies also resorted to reducing their purchasing activities at the highest rate since June 2020, in an attempt to cope with increasing economic pressures.

The survey indicated that about 70% of companies expect further declines in business activity over the coming year, reflecting a state of concern and uncertainty about the market's future amid ongoing geopolitical tensions and their repercussions on the Qatari economy.