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Report on Macro Economic Factors of Saudi Arabian Economy

   

Added on  2020-05-28

17 Pages3217 Words135 Views
Running head: MacroeconomicsMacroeconomicsName of the studentName of the UniversityAuthor note

1MacroeconomicsExecutive summary:Saudi Arabia is one of the largest economies in the Middle East making it the economic hub ofthe Arabian countries. The economy has a sustainable rate of annual growth rate and along withthis; it has a sound fiscal and monetary policy that leads the country to become a strong economyin the Middle East. This report has analyzed various macro economic factors of the SaudiArabian economy and has focused on the factors that alter the performance of the country.Besides this, the report has taken political factors and risk analysis of the economy intoconsideration to trace the performance of the Saudi Arabian economy. To conclude the reporthas mentioned the expected future economical performance of the Saudi Arabian economy andvarious other factors that aids to describe its present performance.

2MacroeconomicsTable of ContentsIntroduction:....................................................................................................................................4Macro economic factors of Saudi Arabia:.......................................................................................4GDP:............................................................................................................................................4Inflation rate:...............................................................................................................................5Government spending:.................................................................................................................6Investment opportunities of Saudi Arabia:......................................................................................7Saving:.........................................................................................................................................8FDI:..............................................................................................................................................9Corruption, political and financial crisis of Saudi Arabia:..............................................................9Fiscal and monetary policy of Saudi Arabia:................................................................................10Unemployment rate and government reaction of Saudi Arabia:...................................................10Risk analysis of Saudi Arabia:.......................................................................................................11Interest rate and risk factors of Saudi Arabia:...............................................................................11Sustainability and ethical standards of Saudi Arabia:...................................................................12Macro economic factors to understand economical nature of Saudi Arabia:................................13Population:.................................................................................................................................13GNI:...........................................................................................................................................14Conclusion:....................................................................................................................................14Reference:......................................................................................................................................15

3MacroeconomicsIntroduction:Saudi Arabia is the richest Arabian country and one of the biggest economies in theMiddle East. Since its foundation back in 1932, Saudi Arabia has immerged as one of the largestmarket in the Middle East and the growth of economy started since 1970 has enabled it tobecome where it is now (Niblock 2015). With strict government policies, good amount of foreigndirect investment and sound banking structure Saudi Arabia has become the largest regionaleconomy in the world (Al Mallakh and el Mallakh 2015). This report is meant to analyze themacroeconomic factors of the country and trace out various factors that influence its economicperformance. Besides this, the report will discuss the expected future performance of the countryalong with various factors that helps to describe the present performance of the country.Macro economic factors of Saudi Arabia:GDP:Gross Domestic Product (GDP) is one of the best macroeconomic variables that aid toanalyze the economic performance of an economy (Coyle 2015). Saudi Arabia is one of thelargest economy around the world and the biggest economy in the Middle East. With a GDPgrowth rate of 4.1% as of 2015, Saudi Arabia is acknowledged as a developing nation, which hasan estimated worth of 1.4 trillion US dollar (Albassam 2015). With the second largest petroleumreserve, Saudi Arabia has strong growth of GDP. Primary sector of Saudi Arabia provide 2.4%of total GDP; whereas secondary and tertiary sector provides approximately 54.7% and 42.9%respectively into the GDP of the nation (Alshahrani and Alsadiq 2014). Figure 1 depicts the GDPof the country and from the diagram; it can be perceived that country has grown largely since1970 to become where it is now. Though there was a sharp decrease in the GDP of the country

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