The effects of the 2008 financial crisis on the investment in the Gulf Essay - 1

The effects of the 2008 financial crisis on the investment in the Gulf area specially on Qatar - Essay Example Delayed implications of the crises were seen in the non-oil producing countries. The Middle East Gross domestic product in 2008 was 6%. By 2009, it had fallen to as low as 3.1% due to the impact of the crises. The global economic recession had a great impact to the economic growths of many economies in the world, with great intensity in Middle East countries. However, most countries did experience slow economic growth rather than total absolute decline. The slow growth in the oil producing countries resulted to a decision made by oil producing countries board. They made a decision to reduce the oil output, leading to a reduction in the value of the Arab oil exports, hence a direct implication to the Gross Domestic Product. In Middle East, oil sector did suffer a whopping 5.2% decline in year 2009 (Allen, 2008). The impacts with relation to the unemployment rates and poverty levels were also massive. The repercussions were severe in some countries. According to International Labor Organization Statistics, there was an estimation unemployment rate of 25%. The tourism and manufacturing industries had been affected to great heights leading to poverty in most households. There was a massive decrease in the real estate construction and the industrial activity forcing the immigrants to resume back to their homes. Per capital income per day declined to levels of 1.25 dollars. Those in a position to earn such an amount were also very few (Reinhart & Rogoff, 2009). Despite the commencing of the rapid economic stimulus programs, it took a long time before the final picking up of the economy. There was continuous economic stagnation. The government also did start some anti-poverty campaigns to decrease the high levels of poverty. The declining oil prices had detrimental impacts to the Gulf Corporation Council Countries. The production of oil was also declining and taking a negative