Qatar: Industrial production contracts at a faster rate in April
Latest reading: Industrial production fell 68.4% on a year-on-year basis in April, following a 67.9% decline in the previous month.
Relative to the previous month’s data, readings in April worsened for manufacturing (-14.5% in annual terms vs -13.4% in March) and energy (-80.6% vs -79.3% in March). The severe contraction in the energy sector was triggered by Iranian missile strikes that significantly damaged Ras Laffan’s LNG infrastructure on 18 March, knocking out 17% to 20% of Qatar’s production capacity.
Outlook: Qatar’s industrial sector will likely continue contracting over the medium term due to prolonged disruptions in its key energy sector, worsened by recent security setbacks, including July’s tanker strike near the Strait of Hormuz. Restoration efforts following severe missile damage to the Ras Laffan gas infrastructure will take an estimated three to five years, while the recent escalation of the conflict has further delayed recovery plans, keeping operations at safety-mandated minimums. Consequently, forecasts for 2026 gas production and LNG exports have been revised downward to reflect a weaker-than-previously anticipated H2 2026 recovery, while ongoing regional conflict has officially delayed the major North Field expansion project until early 2027, with the risk of an even longer pause if hostilities persist.