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Blockade impact on Qatar fading

DUBAI: The economic and financial impact on Qatar of a nine-month Saudi-led blockade is fading, but some risks for the emirate remain, the International Monetary Fund has said. In a report released late Monday, the IMF said the effect of the blockade on economic activity in Qatar had been “transitory” as new trade routes were quickly established and growth remained positive. Foreign financing and resident private sector deposits had fallen by $40 billion but that had been offset by cash injections by the central bank and the sovereign wealth fund. Although Qatar’s economy and banking and financial systems remain sound, an escalation of the rift could adversely affect external funding and growth, the IMF warned, adding that the banking system had to adjust to a new funding model.

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