Current Performance in Saudi Arabia Economy

Running Head: SAUDI ARABIA ECONOMY
CURRENT PERFORMANCE IN SAUDI ARABIA
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SAUDI ARABIA ECONOMY 2
Introduction.
The current performance of Gross Domestic Product, inflation rate and unemployment
rate in Saudi Arabia is performing well currently (Samargandi, 2014). The government policy of
Saudi Arabia is focusing on economic development which will be able to increase economic
growth. This task will describe and analyse how the inflation rate, unemployment rate and GDP
are performing a case study of Saudi Arabia economy.
Gross Domestic Product
The economy of Saudi Arabia is currently beginning to heal from the past challenges of
financial crisis (Ramady, 2010). The Gross Domestic Product in January, February and March of
2018 has grown up to 1.2% compared to last year. This was according to the report released on
Sunday. According to the authorities, the GDP is expected to increase to 3.7% this year. Two
industrial cities have been constructed which will encourage shipping industries and new
refining. The Kingdom of Saudi Arabia has spent a high percentage of GDP on military and in
the whole world, it has 7th largest military expenditures (Al Rahl, 2012). These expenditures
amounted to 48.2 USD Billion which is equivalent to 8.7% of GDP. With the continued high oil
prices, the government of Saudi has had surpluses in the past years and the estimate of 26.5%
GDP in 2011. The government is a net lender of about 13% of GDP and net borrower of 33.2%
of GDP.