JPMorgan predicts Qatar’s economy will shrink by 9% following the Ras Laffan disaster

A sharp decline in economic prospects

Analysts explained in a research note that the new forecast represents a decrease of approximately 14 percentage points compared to previous estimates from about a month ago. This comes amid the repercussions of the attack on the energy sector, which forms the backbone of the Qatari economy.

Ras Laffan…and significant production damage

Qatari authorities stated that the attack damaged approximately 17% of the Ras Laffan facility’s production capacity. They indicated that repairs could take between three and five years, reflecting the extent of the damage to critical infrastructure.

Billions of dollars in annual losses

Authorities estimated the losses resulting from the production decline at approximately $20 billion annually. This will increase pressure on the Qatari economy in the coming period, amid expectations that the economic repercussions of the attack will continue in the medium term.