Saudi Arabia Leads GCC with Dynamic GDP Calculation Methodology Adoption

KSA, 11 March, 2024 :  Saudi Arabia has adopted the moving chain methodology for calculating its real domestic product, marking a significant shift in the Gulf Cooperation Council region. The General Authority for Statistics will now utilize this dynamic approach in its quarterly and annual bulletins, departing from the traditional fixed-base year method.

This new methodology offers a more accurate reflection of economic growth rates by incorporating weights and prices from the year preceding the measurement, thereby better capturing current economic conditions and accommodating price changes.

The moving chain methodology provides a flexible framework for assessing economic activities, allowing for continuous updates and clearer comparisons across different time periods. By considering the structure of production and consumption patterns, it enhances the accuracy of international benchmarking. 

The adoption of this methodology aligns with Saudi Arabia's Vision 2030 objectives, fulfilling regional requirements set by entities such as the GCC Statistical Center and the Arab Monetary Fund, as well as international standards outlined by organizations like the World Bank and the IMF.

The transition to the moving chain methodology reflects Saudi Arabia's commitment to modernizing its economic measurement techniques and meeting global standards for data accuracy and transparency. This approach not only contributes to a more precise understanding of the national economy but also supports informed policy-making and strategic planning efforts. As Saudi Arabia pioneers this method within the GCC region, it sets a precedent for other countries to enhance their economic data methodologies and improve their ability to assess and respond to evolving economic realities.

Source : www.arabnews.com