Describe and compare the economies of the UAE and France Essay

Describe and compare the economies of the UAE and France - Essay Example The tourism sector of the country is very well-developed. The country enjoys the third largest income from this sector (CIA, 2014). The economy of the United Arab Emirates (U.A.E.) is also a global member of multiple organizations like, OPEC, United Nations and Gulf Cooperation Council. The population of the country is 5,628,805 and 76% of the population is Muslim. The economic growth of the U.A.E. could be mainly attributed to its oil sector. However, recently, the government is trying to promote industries other than oil and involvement of private sector in the economy has increased. The financial crisis of 2008 had affected economic growth of the country in recent times (CIA, 2014). The purpose of this paper is to compare these two countries on terms of key economic indicators like, GDP growth rate, GDP per capita, level of unemployment, level of investment and balance of payment position, besides analyzing causes of difference in the level of their performance. In order to compare the level of growth of two countries, GDP growth has been used. Rate of GDP growth is widely employed as an indicator to measure the level of economic growth in a country. GDP can be considered as a summary measure of overall performance of an economy and can facilitate international comparison. The following table tabulates the GDP growth rate of France. The above graph plots the GDP growth rate of France. It can be seen that the country has been adversely affected by the financial crisis, thereby experiencing negative growth rate in 2008 and 2009. The economy has begun to recover since 2010. However, there is still volatility in the GDP growth. It is seen that the level of GDP growth in the U.A.E. has been adversely impacted by the financial crisis in 2008. A negative growth rate in the GDP is noticed in 2009. From comparing the values in above two figures, absolute level of GDP in France is found to be higher than that of the U.A.E.; but in terms of GDP growth rate,