Growth Rate - Consumer Price Index for Qatar Assignment

Development Rate - Consumer Price Index for Qatar - Assignment Example with prev. year (a) Prev. year (b) (a/b)100 2001 1.2 82.7 1.45% expansion 2002 0.2 83.9 0.24% swelling 2003 1.9 84.1 2.26% expansion 2004 5.9 86.0 6.86% swelling 2005 8.1 91.9 8.81% expansion 2006 11.8 100.0 11.8% expansion 2007 15.4 111.8 13.77% expansion 2008 19.2 127.2 15.09% expansion 2009 - 7.1 146.4 4.85% flattening 2010 - 3.4 139.3 2.44% collapse 2011 2.6 135.9 1.91% swelling ( The World Bank, 2012) Qatar’s financial advancement was noteworthy from 2005 to 2009 regardless of the worldwide downturn in the later piece of the period. There was a 9 percent genuine by and large GDP (Gross Domestic Product) development. In the year 2008, GDP development was 16 percent. This was a result of increment in the creation level of melted flammable gas (LNG) and condensates. Likewise, there was a decent improvement in the nonhydrocarbon division. Every one of these variables prompted nonstop value expansion from 2005 to 2009 (IMF Executive Board Concludes 2009 Article IV Consultation with Qatar, 2010). Swelling arrived at the top in 2008 with 15 percent. This was the most elevated expansion rate among all the GCC nations and Qatar which is the wealthiest Arab country experience such a gigantic bounce in swelling rate due to debilitating US dollar. The swelling was additionally because of different elements like increment in residential rents, ascend in food costs and overwhelming local interest of oil. As indicated by an examination led by Qatari National Bank (QNB), there was a three-crease increment in shopper costs in Qatar during the years somewhere in the range of 2005 and 2009 bringing about normal of 8.9 percent. This figure is high contrasted with the normal during 2000-2004 which was 2.5 percent. The reliable ascent of lodging costs was the principle explanation for the developing swelling from 2005 till 2008 (Kawach, 2010). In any case, in 2009 Qatar’s economy saw a sharp flattening of 4.85 percent. This was because of a sharp decrease in the r esidential house rents. This decrease in residential house lease happened in all Gulf Cooperation Council (GCC) nations, yet Qatar saw the most extreme decay. Monetary development was for the most part energized by the financial arrangement through reliable spending being developed segment. In any case, for this couple of undertakings of government were given more noteworthy need. As a result of the expansion in costs of oil and gas the outer current record was approximated a huge excess with practically 15.7 percent of GDP. The gross hold of national bank was additionally fortified to around 5 months of imports of products and ventures (IMF Executive Board Concludes 2009 Article IV Consultation with Qatar, 2010). Qatar which is the main LNG sent out on the planet confronted emptying for the second back to back year in 2010 with rents declining more than the earlier year. As indicated by Saudi American Bank Group (SAMBA) Qatar was profoundly dug in flattening for two monetary years in spite of the fact that there was theory of substantial development in the economy because of expanding LNG trades, rising oil costs and enormous scope open spending. During the last quarter of 2010, oil and non-oil parts were theorized for upward patterns while development and land ventures stayed unaltered. SAMBA said â€Å"excess flexibly in the land division keeps on squeezing rents which is being reflected in