Qatar’s inability to export LNG reliably through the Strait of Hormuz has had a devastating impact on the country’s economy. Limited to intra-Gulf sales to Kuwait and the UAE and occasional high-risk ad hoc shipments through the strait, government revenues slumped to just $7bn in Q2, their lowest level in at least a decade.
Lower capital expenditure provided some relief, but Qatar still recorded a $5.8bn quarterly deficit, the largest since 4Q 2016 (see chart 1). That previous deficit was caused by a sharp rise in spending, whereas the latest shortfall stems primarily from the collapse in revenue. (CONTINUED - 966 WORDS)
