Oil Price Plunge Causes 20 Percent Drop in Qatar's GDP

Qatar's Gross Domestic Product (GDP) in 2015 fell by 20.17 percent to US$164.6 billion from the previous year. The fall in oil prices since mid-2014 impacted oil-producing countries in the Middle East, including Qatar. Qatar's GDP peaked in 2014, reaching US$206.2 billion.

Due to accusations of financing terrorism and allying with Iran, Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt severed diplomatic ties with Qatar. This will impact the economy of the country with its capital in Doha. Airlines, tourism, and trade will suffer from the severed diplomatic relations with neighboring countries, potentially suppressing Qatar's economy.

According to Tradingeconomics data, Qatar's economy grew by 3.7 percent (YoY) in the third quarter of 2016, but slowed to 1.7 percent in the fourth quarter.