The closure of the Strait of Hormuz has delivered a severe blow to Qatar’s economy, with oil and gas exports reduced to a trickle. The deficit nearly doubled to $2.8bn in Q1 and will widen again in Q2, but Doha can still draw on its considerable reserves.
Qatar released its Q1 fiscal results on 26 May, providing a first glimpse into the economic impact of the Middle East conflict. With the disruption covering only one month of the quarter, the figures are likely to understate the damage. Yet the deficit still nearly doubled from $1.5bn in Q4 to $2.8bn (see chart 1). (CONTINUED - 1011 WORDS)
