The General Authority for Statistics in Saudi Arabia has recently reported a 1.7% decrease in the real GDP of the country in the first quarter of 2024 compared to the same period in 2023. This decline was mainly attributed to a significant drop in oil activities of 11.2%, while non-oil activities saw an increase of 3.4% and government activities grew by 2%.
In order to calculate the real gross domestic product, the Authority adopted a new methodology called moving series methodology in the national accounts. This replaced the previous methodology that was based on a fixed base year. The moving chain methodology is considered a dynamic approach used to measure economic growth rates. It estimates the real growth rates of national accounts using weights and prices from the year preceding the year of measurement. This methodology provides a more accurate reflection of current economic conditions in the country.
The adoption of this new methodology provides a measurement framework within contiguous time periods, ensuring a more precise analysis of the economic situation. The Authority issued bulletins for the fourth quarter of 2023 using this new methodology, providing a more detailed and updated perspective on the country’s economic performance.
The use of moving series methodology allows for a more accurate calculation of GDP growth rates as it uses up-to-date data and takes into account changes in economic activity over time. Additionally, it provides valuable insights into how different sectors are performing and can help inform policy decisions related to economic development.
Overall, the adoption of this new methodology by Saudi Arabia’s General Authority for Statistics is an important step towards improving our understanding of the country’s economy and helping us make better decisions about its future development.
