Qatar and Kuwait Economies - Assignment Example

Attributed to their low population, the two countries have achieved one of the highest employment rates in the world. As the statistics have it, the two countries have achieved above 90% employment rate and hence the economy grows rapidly. The rate of inflation in the two countries is very low, though some disparities are clear. When it comes to exports, the two countries export petroleum products as their principal source of foreign exchange. However, Qatar exports fertilizers and raw aluminum while Kuwait exports cement and ships. Their chief imports include cars, jewelry and aircraft; and food, construction material and vehicles for Qatar and Kuwait respectively.

Qatar has a favorable balance of trade as the difference between export and import is very high. This means that the currency in Qatar is very strong against that of the trading partners. This implies that the country earns a lot in terms of foreign exchange. As such, it is important for the country to maintain its export at a higher level as it directly impacts its economic growth. Another significance of a higher net export is that the country will have better terms of international trade and higher bargaining power in international trade and other affairs, Hightower (2008). Read More