Standard Chartered: Due to LNG revenue shock, Qatar faces further risk of expanding fiscal deficit

⑴Standard Chartered Bank stated that, due to restrictions on liquefied natural gas exports dragging down oil and gas revenues, Qatar’s fiscal deficit in 2026 could exceed the bank’s previous estimate of 5% of GDP. The fiscal deficit in the second quarter expanded to $5.8 billion, compared to only $200 million in the same period last year. Government fiscal revenue fell by 57% year-on-year, while fiscal expenditure remained rigid. ⑵Seasonal non-oil and gas income has to some extent cushioned deficit pressures; without this income, the deficit this quarter would have approached $11 billion. Qatar possesses substantial sovereign assets and access to the bond market, providing ample financing capacity.