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IMF: Qatar non-oil growth to shrink by 1 percent

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The International Monetary Fund said Wednesday that transportation and food costs in Qatar have "edged up" due to a diplomatic rift that led four Arab countries to cut ties with Doha.

An IMF team visited the capital, Doha, this week, saying in a statement that some costs have gone up as a result of delays caused by rerouting trade. Non-oil growth is projected to shrink by 1 percent to 4.6 percent this year.

The IMF said that the impact was mitigated by liquidity injections by the Qatar Central Bank and increased public sector deposits.

While it said the crisis may impact some GCC countries, the IMF warned the rift could weaken confidence and reduce investment and growth in Qatar.