Saudi Electronic University Effects of the Pandemic on GDP of Saudi Arabia Essay Help

productivity & production and GDP growth & GDP components.

COLLAPSE

What happened to the GDP in general and the GDP by economic activity on table 1 or table 4 during the pandemic? Which sector has been affected more during the pandemic and why would you think this sector has been affected more?

According to the preliminary estimates, Gross Domestic Product (GDP) of Saudi Arabia at recorded a increase in growth rate of 1.6% in the first quarter of 2021, compared to -3.2% in the same quarter of the previous year. There is negative growth originated mainly from the contraction in the Oil Sector by 3.7%, while the Non-Oil Sector recorded a positive growth rate of 3.4%. Within the Non-Oil sector, the Private Sector growth by 6.2% and the Government Sector decreased by 2.4%.

In fact, there are Increasing signs of a sustained recovery of non-oil economic growth.

More specifically, we see an expansion in the ‘Wholesale & Retail, Restaurants & Hotels’ sector, Especially since the restrictions on social spacing is gradually being eased and there is a constant recovery in entertainment activities and internal tourism.

The strong level of growth in the non-oil sector will do enough to keep imports at appropriate levels, albeit lower than levels before the pandemic. At the same time, it is assumed that the annual increase in both oil exports and non-oil revenues lead to the payment of the current account to a surplus of 2.5% of GDP.

Transport, storage and communications sector fell by -1.4 per cent in 2021 as a result of the ongoing travel restrictions, suspension of tourist visas, and the prohibition of Umrah, Hajj and reduce considerably. Although the reopening of Umrah during the fourth quarter of last year, there are still restrictions on the number of pilgrims in force.

At the same time, it is likely to be the best performance of the telecommunications sector sub, especially during the closure, which led to work settings from home. Indicative of this is that most listed telecommunications companies reported strong earnings growth during the year.

One of the most important targets for the Vision 2030 is to switch the production in Saudi Arabia from mostly depending on Oil to diversify its production, would you think we are going into the target of diversifying production through looking at the tables 15 & 16 from 2018 to 2021

The Saudi economy has enormous possibilities to accomplish the objectives for vision 2030. by 2030 the Gross domestic product could twofold again after its first leap during the period from 2003-2013. It is assessed that eight sectors other than the oil area will produce over 60% of the development and make occupations; these areas are Mining and Metals, Petrochemicals, Manufacturing, Retail and wholesale trade, The travel industry and hospitality, Finance, Construction, Medical services. The significant elements that the policymakers should think about are: First, the diversification should be outside oil, that is, the development requires exercises outside the oil area. Other than this, it is important to spend more on human resources, schooling, preparing and wellbeing to the degree that should contribute to higher output and productivity

Reference:

A. Guendouz, A., & M. Ouassaf, S. (2020, October 13). The Economic Diversification in Saudi Arabia Under the Strategic Vision 2030. Academy of Accounting and Financial Studies Journal. https://www.abacademies.org/articles/the-economic-…