Global economic recession

The price of ethylene from 2004-2010 represents an excellent example of the ethylene price volatility spanning relatively low feedstock costs to relatively high feedstock costs, with the price of ethylene in January 2009 illustrating the weakness in ethylene prices during a global economic recession. This data is summarized in Table 1.18. 

I am not an economist and must rely on secondary sources to speculate on how the global economic crisis has affected the Emirati megaprojects. It is obvious that the global economic recession and the decline in oil price (from US 140 dollar per barrel last summer to about US 35 in February 2009) have created an abrupt halt in the Gulf economic boom. These economies, as I have argued, are more reliant on fossil fuel exports than they like to admit. Stock and real estate markets have subsequently fallen dramatically. However, the previous good years have provided UAE a buffer to cope with fiscal deficits, even if the GDP would fall in 2009. 

Although the pace of downsizing has slowed, it still continues—not because of slow economic growth or recession but because global economic and technological pressures have imposed requirements that the same tasks that existed prior to downsizing be performed by fewer people. 

Additionally, in a global economic situation of recession, food companies can find difficulties to assume the costs associated to the development and scientific substantiation of evidence for new products, especially for cases that could imply expensive research. 

The increase in global polyethylene consumption was 14% for the six year period 2004-2010, which corresponds to an annual increase of just over 2%. It is important to note that in late 2008, the global economy experienced a deep recession and the global economic growth slightly declined between 2008 and 2010. 

The GFC (Global Financial Crisis) or global economic slowdown/recession is having an effect on the constmction sectors in GCC countries. But the impacts are not the same across all Gulf countries. Dubai is most negatively affected, whereas Abu... 

In this paper I raised the question if these megaprojects could be considered as sustainable. The recent economic recession has really made my point. Overproduction of luxury in the UAE existed even before the crisis a problem, but the demand for luxury properties has now dropped drastically. I criticized the Emirati strategy for developing an economy that is basically dependent on business-as-usual and I think the recent crisis has revealed its vulnerability. I have shown that the Emirati development is not ecologically sustainable, but moreover, the global crisis have shown that is not even economic sustainable or even viable in the longer perspective. 

Market prices are extremely volatile and follow cycles of advance and decline related to fluctuations ia global iaventories and world economic forces. For example, for northern bleached softwood kraft, which is considered a global benchmark pulp grade, market price went from 840/t ia 1990 down to 440/t ia 1993 as a result of oversupply and worldwide recession (3). By 1995 virtually all of the price losses had been recovered. 

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