UPDATE 1-Qatar's economy shrinks nominal 4.3 pct q/q in Q2

* Qatar's nominal GDP down 29.7 pct y/y

* Economy down due to fall in natural gas prices

* Oil price recovery reduces the fall

(Adds details, background)

DUBAI, Nov 5 (Reuters) - Qatar's nominal gross domestic product fell 4.3 percent in the second quarter compared with the previous three months, hit by a slump in natural gas prices, preliminary official estimates showed on Thursday.

The world's top natural gas exporter has been enjoying strong growth rates, unlike the rest of the region, keeping its oil and gas output unchanged despite a fall in oil prices from last year's record highs. The OPEC member's economy plunged 29.7 percent from a year ago in nominal terms with GDP reaching 67.9 billion riyals ($18.7 billion) in current prices, the authority said.

"LNG (liquefied natural gas) prices declined by an overall 31 percent in line with international pressures on the LNG industry as a result of the 2008 financial crisis," the office said in a statement.

"Oil price recovery offset the decline through raised prices of condensates," it added.

Manufacturing GDP fell 4.7 percent in the second quarter on a quarterly basis, while the key gas sector was down 19.6 percent. The oil sector was up 36.1 percent, the data showed.