Qatar’s Economy Contracts for First Time in 5 Years
2026-08-31 08:56
By
Kyrie Dichosa
1 min. read
Qatar’s economy shrank by 7.0% year-on-year in Q1 2026, following a 2.0% expansion in Q4 2025 and marking the first contraction since Q1 2021.
This was mainly driven by a steep contraction in mining and quarrying activities, which accounted for 28.7% of GDP and fell 25.8% annually, while non-mining and quarrying activities, representing 71.3% of GDP, expanded 3.5%.
Within non-mining sectors, the fastest-growing activities included accommodation and food services (+12.0%), wholesale and retail trade; repair of motor vehicles and motorcycles (+9.0%), and electricity, gas, steam and air conditioning supply, alongside water supply, sewerage, waste management and remediation activities (+9.0%).
The figures highlight continued resilience in non-mining sectors despite a sharp downturn in mining and quarrying, underscoring ongoing efforts to diversify Qatar’s economy and strengthen non-hydrocarbon activity.
On a quarterly basis, GDP contracted by 7.9%.