Qatar’s economy expanded by 1.9% year-on-year in the second quarter of 2025, moderating from a 3.7% growth in the previous quarter, according to the National Planning Council. Despite the softer pace, the performance highlights resilience, particularly through non-hydrocarbon activities, which remain the main driver of growth.
Diversification Beyond Hydrocarbons
Non-hydrocarbon sectors surged by 3.4%, accounting for 65.6% of GDP. This structural shift reflects Qatar’s ongoing commitment to economic diversification, as outlined in the Third National Development Strategy (2024–2030) and Qatar National Vision 2030. By expanding the role of services, tourism, and other productive industries, the country is reducing dependence on oil and gas revenues while building a sustainable, knowledge-based economy.
Key Growth Drivers
Several industries recorded double-digit gains, underscoring the breadth of expansion:
- Agriculture, forestry and fishing: +15.8%
- Accommodation and food services: +13.4%
- Arts, entertainment and recreation: +8.9%
- Wholesale and retail trade: +8.8%
- Construction: +8.7%
In total, 11 of 17 sectors posted positive growth, signaling broad-based resilience across the economy.
Supportive Sectors and Policy Impact
The strongest contributions came from tourism, services, and infrastructure investments, with rising visitor inflows boosting accommodation, retail, and entertainment. At the same time, construction continues to benefit from large-scale government projects, while agriculture reflects efforts to strengthen food security.
Authorities also emphasized ongoing improvements in GDP measurement and revisions to national accounts in line with international standards, ensuring greater accuracy and transparency in economic reporting.
Outlook
While growth eased compared to the first quarter, Qatar’s economic performance demonstrates a stable expansion path anchored in non-hydrocarbon activities. The government’s strategic investments in tourism, infrastructure, and food security, coupled with the broader diversification agenda, position the country to sustain medium-term growth despite global uncertainties in energy markets.
Source: National Planning Council, State of Qatar
