Following a rocky July, the value of Qatar’s imports rebounded sharply in August, government data showed on Wednesday. The information shows that the economic impact of the blockade imposed on Qatar is lessening as the economy bounces back.

Qatar’s imports dropped by around 35 percent after Saudi Arabia, the UAE, Egypt and Bahrain began the illegal blockade, cutting off economic ties and closing borders and airspace to the country on June 5th.

Shipping and land routes were disrupted to Qatar, and it became necessary for the small Gulf state to rethink its entire import strategy. New shipping routes with China, Turkey and Pakistan were some of the measures taken to control damage and keep the economy afloat—efforts that have paid off.

Imports jumped from 39.1 percent in August to 8.68 billion riyals ($2.38 billion), according to Qatar’s Ministry of Planning and Statistics. Imports remain 7.8 percent below the level they were a year ago, but are significantly higher than what they were the first two months of the blockade.

In August 2017, Qatar Ports Management Authority (Mwani Qatar) cleared 142,854 tonnes of general cargo, compared to 80,275 tonnes in July 2017, expressing a growth of 78 percent.

Qatar’s exports, most of which are natural gas and oil, have climbed 17.7 percent year-on-year to 21.30 billion riyals last month. Due to this, its trade surplus has expanded from 45.4 percent to 12.62 billion riyals.

Motor vehicle imports have reportedly continued to drop, and have fallen 57.8 percent from last year at 267 million riyals.

Experts have suggested that this may be due to local interest waning following the imposition of the blockade. The economy has slowed, but no recession is predicted, thankfully.  

The effects of the blockade on Qatar’s economy may be deeper than can currently be detected, but as far as the data shows, the country has rallied, and may yet strengthen further.

Image credits:

Cover image - Geo TV

Inline image - Middle East Eye