Report on the Effects of the GCC Blockade on the Economy of Qatar

This report examines the economic consequences of the GCC blockade imposed on Qatar in June 2017 by members of the Gulf Cooperation Council (GCC). The blockade initially caused severe damage to Qatar's trade relations and negatively impacted the banking sector across the Gulf. The report highlights a lack of cooperation among GCC members and differing opinions on the blockade's effectiveness. Recent signs of improvement in the economies, including Qatar's, are attributed to government policies in Saudi Arabia, the UAE, and Qatar itself. The report also notes a historical high in defense budgets, which is unfavorable for economic improvement and issue resolution. It concludes that resolving the issues is crucial for the overall performance of Gulf nations and calls for responsible action.

EFFECTS OF GCC BLOCKADE
ON QATAR’S ECONOMY
Economics assignment

The background
Imposition of blockade on
Qatar on June 2017
Members of GCC alleged
association of Qatar with
terrorist group and Iran

InitialImpacts on Qatar and others
Qatar Experienced severe
damage in terms of trade
with the members of GCC.
Banking sector
deteriorated all across
Gulf due to reduction in
foreign deposits.

Lack of cooperation among GCC members
Recently lack of
cooperation have been
seen among the
members due to the
longevity of the
blockade.
Members have
differed in opinion
regarding whether
blockade is being use
beyond its usefulness.

Sign of improvement in all the economies
including Qatar The economies have shown
signs of improvement first
time after the imposition in
recent months.
Government policy of Saudi
Arabia and UAE has boosted
the banking in gulf nations.
Policies of Qatar has also
increased deposit from foreign
Claims of credit over the
improvement spurred fresh
controversy.

Defense Budget is now all time high
The recent overall
defense budget of
gulf nation has been
at the historical high.
Not favorable for
further economic
improvement and
resolution of the issue

Conclusion Issues needs to be
solved for the sake
of overall
performance of Gulf
nations.
Further
development has
been inclement for
resolution and
responsible action is
desired.

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