Qatar’s Economy Shrinks Most Since 2019

Qatar’s economy shrank by 15.7% year-on-year in Q2 2026, following a 7.0% contraction in Q1 and marking the sharpest economic decline since Q1 2019. This was mainly driven by a sharp contraction in mining and quarrying activities, which accounted for 20.1% of GDP and fell 50.7% annually, while non-mining and quarrying activities, representing 79.9% of GDP, expanded 2.6%. Within non-mining sectors, the fastest-growing activities included real estate activities (+11.0%), human health and social work activities (+10.2%), and financial and insurance activities (+8.3%). Meanwhile, GDP at current prices declined 11.6% year-on-year to QAR 170.5 billion from QAR 192.9 billion a year earlier. On a quarterly basis, GDP shrank by 10.3%.

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%.

Qatar’s economy expanded by 2% year-on-year in Q4 2025, slowing from a 2.9% growth in the previous period. The moderation was driven by a contraction in mining and quarrying activities, which accounted for 33.8% of GDP and declined 2.4% annually, while non-mining and quarrying activities, representing 66.2% of GDP, rose 4.5%. Within non-mining sectors, the fastest-growing activities included accommodation and food services (+12.8%), construction (+12.6%), and transportation and storage (+10.6%), supported by strong domestic demand, visitor activity, and ongoing infrastructure and public-sector projects. The performance underscores continued progress in diversifying the economy and strengthening non-hydrocarbon sectors, in line with the Third National Development Strategy and Qatar National Vision 2030. On a quarterly basis, Qatar’s GDP contracted by 0.4%, following a 2.3% expansion in the prior period.