In a notable economic shift, Qatar's M2 money supply has recorded a year-over-year decline, according to the latest figures updated on June 19, 2025. The M2 money supply, which encompasses cash, checking deposits, and easily convertible near money, has turned negative, retracting by -1.30% in May compared to the same month last year.
This marks a significant departure from the previous month's indicator in April, which showed a modest year-over-year increase of 0.20%. Such a contraction in the money supply could signal tightening financial conditions, potential decreases in consumer spending, or changes in the banking sector's lending behavior within the nation.
Economists and policy-makers will be closely observing this development to gauge its implications on Qatar's economic growth trajectory. As a crucial component of monetary policy, the M2 money supply is often reflective of the broader economic sentiment, and its decline may prompt further review and responsive action to stabilize the financial environment in the coming months.
