Thought for the day

Saudi Arabian Living Standards Demonstrate Dismal Long-Term Growth


 
Last updated: 3 July 2024
 
Close link to oil prices produces volatility in Saudi living standards growth despite favourable demographics.

Saudi Arabia's GDP Per Capita Growth
Index: 1995=100
Saudi Arabian Living Standards Demonstrate Dismal Long-Term Growth
* GDP in Purchasing Power Parity terms with added estimates for the size of the informal economy and adjustments for out-of-date GDP base year data.


Over the last twenty-five years real GDP per capita in Saudi Arabia has risen by only 5%, marginally better than the small uplift of 4% in the Middle East, but greatly inferior to the 45% experienced across Emerging Markets.

Changes in living standards have been volatile in the country. Fluctuations in oil prices have resulted in sharp rises and falls in living standards causing periods of stagnation. Real GDP per capita rose by only 2% over the period 1996 to 2010 and despite a sharp rise of nearly 5% over the next five years, average living standards had declined 7% by 2021. Despite favourable demographics, this pattern is likely to repeat given the slow progress in diversifying the economy away from dependence on hydrocarbons. See more data...



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