The business cycle reflects the dynamics of economic development in the form of an upswing and subsequent downturn. Qatar is a country with a promising and developing economy. Qatar’s primary industries are oil and gas processing, which form the basis of its economy. These industries provide more than 55% of GDP, about 85% of export earnings, and 70% of government revenues (Eid, 2020). The beginning of the economic cycle began early in the 1940s; however, WWII halted it. Hence, the after-war output of oil, which signified the expansion of the economy.
At the beginning of the 21st century, Qatar became one of the world’s largest producers and exporters of natural gas. In 1997, the development of one of the world’s largest natural gas fields, “Severnoye,” located in the sea, began (Alsamara et al., 2018). Qatar’s Gross Domestic Product (GDP) shrank to $146 billion in 2020 (Eid, 2020). The maximum volume reached $206 billion in 2015, and the minimum – $0.5 billion in 1970 (Eid, 2020). Thus, it can be stated that the country came to its peak stage in 2015 since it was the top country in several industries, which influenced the whole world. Even though Qatar’s current GDP is one-fourth less than the maximum one, the government did not suffer any severe recession.
As a result, it is visible that Qatar has come through several stages in the business cycle, including the expansion, peak, and currently, it is experiencing a slight decline. Even though it is insignificant, Qatar is trying to reoccupy the leading positions in the gas and oil industries. To fix the situation and enhance the GPD, the country is planning to increase oil export and expand the gas manufacture.
References
Alsamara, M., Mrabet, Z. & Jarallah, S., & Barkat, K. (2018). The switching impact of financial stability and economic growth in Qatar: Evidence from an oil-rich country. The Quarterly Review of Economics and Finance, 73, 205-216.
Eid, A. (2020). The impact of government expenditure on GDP in the State of Qatar: a nonlinear ARDL approach. International Journal of Sustainable Economy, 12(1), 25-43.