* Talal Al-Sayah from Riyadh
Saudi Arabia's Ministry of Finance estimated real GDP growth this year at 2.1 per cent, then a rise to 2.3 per cent in 2019, then 2.2 per cent in 2020, and increase to 2.4 per cent in 2021.
According to the monitoring of the economic reports unit in the newspaper Al-Eqtisadiah and was based on the statement of the Ministry of Finance and the General Authority for Statistics, the average annual growth of real GDP from 2019 to 2021 is expected to average 2.3 per cent.
According to the data of the General Authority for Statistics, the gross domestic product at constant prices during the second quarter of this year, compared to the same period last year, increased by 1.6 percent, which amounted to about 639.25 billion riyals, compared with 629.1 billion riyals in the second quarter of last year.
During the first half of 2018, the value of real GDP (fixed prices) is amounted to about 1.282 trillion riyals, compared to 1.269 trillion riyals during the same period last year, with registering a growth of 1 percent, equivalent to 12.476 billion riyals.
In reference to Saudi Ministry of Finance estimates, nominal GDP is expected to reach SR 3387 billion in 2010 from SR 2,934 billion in 2018.
The Ministry of Finance expected nominal GDP to grow by 13.9 per cent this year, and in 2019 by 6.9 per cent to reach 3136 billion riyals, 3.1 per cent during 2020 to reach 3232 billion riyals and 4.8 per cent 2021 to reach 3387 billion riyals.
Gross domestic product (GDP) is the monetary value of all finished goods and services produced within the country's borders over a specified period of time. It is divided into two nominal GDPs (at current prices) and a real domestic product (at constant prices).
Nominal GDP is defined as the gross domestic product (GDP) that is valued at current market prices. The nominal is different from the real GDP because it includes price changes due to inflation or a higher overall price level.
Yesterday, the General Authority for Statistics (GaStat) released the National Accounts Indicators report for the second quarter 2018 through its official website.
The report pointed out that the Kingdom's GDP increased at current prices during the second quarter of 2018 by 17.76 percent, compared to the same period last year.
The oil sector witnessed a rise in the value of its GDP by 44.02 per cent in current prices and 1.33 per cent in constant prices compared with the same period last year.
During the period, the government sector witnessed an increase in the value of its domestic output by 18.01% at current prices and 4.01% at constant prices, compared to the second quarter of the previous year 2017.
The report showed that the private sector recorded a rise in the second quarter of 2018 by 3.95 per cent at current prices and 1.79 per cent in constant prices compared to the same period of the previous year.
The National Accounts Indicators Bulletin, which is issued by the General Authority for Statistics quarterly, includes tables on GDP by economic activity and regulatory sectors at current and constant prices, contribution of regulatory sectors and various economic activities, as well as expenditure such as government consumption expenditure, private consumption expenditure, capital formation, and exports and imports.
* Economic Reports Unit
