The General Authority for Statistics in Saudi Arabia recently reported a 1.7% decrease in the country’s real GDP during the first quarter of 2024 compared to the same period in 2023. The decline was attributed to an 11.2% drop in oil activities, while non-oil activities saw an increase of 3.4%, and government activities grew by 2%.
To calculate this new measure, the Authority has shifted from using the fixed base year methodology to the moving chain methodology in national accounts. This change is expected to provide a more accurate and timely reflection of economic growth rates by using weights and prices from the previous year. By adopting this dynamic approach, policymakers and analysts can better understand how economic conditions have evolved over time, allowing them to make more informed decisions.
The implementation of this new methodology will also improve the accuracy and reliability of economic data provided by the General Authority for Statistics. With more precise measurements within contiguous time periods, policymakers can gain a better understanding of the country’s economic performance, enabling them to make more informed decisions that will benefit both individuals and businesses alike.
Overall, this shift towards a more dynamic approach to measuring economic growth rates is expected to provide policymakers with valuable insights into Saudi Arabia’s economic performance. With increased accuracy and timeliness in their data collection efforts, decision-makers will have access to up-to-date information that will enable them to make better decisions for the country’s future growth and prosperity.
