Economics in the World - Essay Example

Between 2003 and 2006, trade in goods within these countries doubled. GCC states’ share of world trade increased to 2.7% from 1.9% during the same period. Total exports of goods in 1990 stood at USD 86 billion, but increased to USD 110 billion by the end of the 1990s. In 2006, total exports rose to USD 422 billion. In terms of imports, total imports were at USD 48 billion in 1990, and increased to USD 82 billion by the end of the 1990s. By 2006, the imports in the GCC states were at USD 238 billion.

In 2006, the difference between imports and exports was 184 billion. The main consumer of GCC states’ exports is Asia, while the European Union accounts for nearly one third of the imports to the GCC states. In 2006, exports to Asia from the GCC states stood at 60%, with Japan accounting for 21% of the exports. Saudi Arabia and other Gulf states emerged as key global players in the first decade of the twenty-first century. This development facilitated by the enormous resources and capital that was accumulated by these countries in the course of the second oil boom experienced in the year 2002-2008.

Through theinfluence of their resources, these countries started reshaping the economy of the world. This influence was more eminent in the wake of the 2007-2008 economic crisis. Partnerships with countries such as China, Russia, East and South Asian nations, and India diverted the Gulf States’ focus further eastwards (Ulrichsen 118). The global share of natural gas and oil is anticipated to increase by 5% by 2020 from 28% which was recorded in 2000. With most of these resources going to the Asian market, the GCC states will most likely increase their diversification and widen their economic interdependencies for the Asian market.

According to statistics, 40% of the increase in global oil and natural gas consumption was traced to China from 2004 and 2007. In 2009, China’s import of oil from Saudi Arabia surpassed that of the United States