Thought for the day

Saudi Arabian GDP Growth Underperforms the Middle East and Emerging Markets


 
Last updated: 3 July 2024
 
Despite favourable demographics performance is held back by inequality and poor governance

Saudi Arabia's GDP Growth
Index: 1995=100
Saudi Arabian GDP Growth Underperforms the Middle East and Emerging Markets
* GDP in Purchasing Power Parity terms with added estimates for the size of the informal economy and adjustments for out-of-date GDP base year data.


Saudi Arabia’s real GDP increased by 94% since 1996, a disappointing performance compared even with the troubled Middle East (an increase of 151%) , and less than half the growth performance of Emerging Markets which saw an expansion of 247%. The country’s 10-year cumulative annual average growth rate of GDP was 1.8% . Over the last three years average growth fell to -0.2%.

The kingdom benefits from positive demographics which would normally boost GDP growth. The proportion of the population under 15 is high at 34.4% while the population over the age of 64 is low at only 4.9%. GDP growth potential is hampered by several factors. There is great inequality . The World Economics Inequality Index registers a low 27.1 compared with 50.0 in Egypt. Furthermore, as an autocracy, political freedom is minimal and the World Economics Governance Index is only 30.6, well below neighbouring states Kuwait at 37.1 and the United Arab Emirates at 48.5.  See more data...



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