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% swelling 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% swelling 2008 19.2 127.2 15.09% swelling 2009 - 7.1 146.4 4.85% emptying 2010 - 3.4 139.3 2.44% flattening 2011 2.6 135.9 1.91% expansion ( The World Bank, 2012) Qatar’s financial advancement was noteworthy from 2005 to 2009 despite 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 gaseous petrol (LNG) and condensates. Additionally, there was a decent improvement in the nonhydrocarbon part. Every one of these components prompted nonstop value expansion from 2005 to 2009 (IMF Executive Board Concludes 2009 Article IV Consultation with Qatar, 2010). Expansion arrived at the top in 2008 with 15 percent. This was the most noteworthy expansion rate among all the GCC nations and Qatar which is the wealthiest Arab country experience such an enormous hop in swelling rate as a result of debilitating US dollar. The expansion was likewise because of different variables like increment in local rents, ascend in food costs and overwhelming residential interest of oil. As indicated by an examination directed 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 fundamental explanation for the developing swelling from 2005 till 2008 (Kawach, 2010). Notwithstanding, in 2009 Qatar’s economy saw a sharp collapse of 4.85 percent. This was because of a sharp decreas e in the household house rents. This decrease in local house lease happened in all Gulf Cooperation Council (GCC) nations, yet Qatar saw the greatest decay. Financial development was generally energized by the monetary approach through predictable spending being developed division. Notwithstanding, for this couple of activities of government were given more prominent need. Due to the expansion in costs of oil and gas the outer current record was approximated an enormous overflow with practically 15.7 percent of GDP. The gross hold of national bank was additionally reinforced 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 collapse 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 emptying for two financial years despite t he fact that there was theory of substantial development in the economy because of expanding LNG trades, rising oil costs and huge scope open spending. During the last quarter of 2010, oil and non-oil segments were hypothesized for upward patterns while development and land ventures stayed unaltered. SAMBA said â€Å"excess flexibly in the land area keeps on squeezing rents which is being reflected in