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Coursework for MBA ARAMCO 2022 Global Macroeconomics Alex Michaelides In 2003 two analysts at Goldman Sachs wrote a research report coining the term “BRICs”. These were the main conclusions...

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Coursework for MBA
ARAMCO 2022
Global Macroeconomics
Alex Michaelides
In 2003 two analysts at Goldman Sachs wrote a research report coining the term
“BRICs”. These were the main conclusions from the Report:
Over the next 50 years, Brazil, Russia, India and China—the BRICs economies—could
ecome a much larger force in the world economy. Using the latest demographic projections
and a model of capital accumulation and productivity growth, we map out GDP growth,
income per capita and cu
ency movements in the BRICs economies until 2050.

The results are startling. If things go right, in less than 40 years, the BRICs economies
together could be larger than the G6 in US dollar terms. By2025 they could account for over
half the size of the G6. Cu
ently they are worth less than 15%. Of the cu
ent G6, only the
US and Japan may be among the six largest economies in US dollar terms in 2050.

About two-thirds of the increase in US dollar GDP from the BRICs should come from higher
eal growth, with the balance through cu
ency appreciation. The BRICs’ real exchange
ates could appreciate by up to 300% over the next 50 years (an average of 2.5% a year).

Your task is to replicate this analysis for KSA for the next 20 years. It is best to
eak up the analysis in two parts, at first ignoring cu
ency appreciation issues
and then adding real exchange rate appreciation as well.

There are a number of issues you need to discuss/think about. A key issue for
KSA is the non-oil GDP, that is the part that needs to catch up to other
economies. A second issue is the potential transition to renewables in KSA and
the rest of the world. How might that transition affect KSA?

You are asked by the ministry of finance to prepare a written response that is
no greater than 5 pages (excluding diagrams and figures) and an EXCEL
spreadsheet illustrating your calculations. You can refer to any number of
diagrams or calculations in the EXCEL spreadsheet in your writeup.

Cu
ent prices
    Expenditure on Gross Domestic Product at Cu
ent Prices
    (Million Of Saudi Riyals)
            1970    1971    1972    1973    1974    1975    1976    1977    1978    1979    1980    1981    1982    1983    1984    1985    1986    1987    1988    1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013    2014    2015    2016    2017    2018    2019    2020    2021*
    1-    Gross Final Consumption Expenditure    11,704    12,885    14,631    19,180    31,173    51,006    76,267    116,487    152,789    199,644    224,071    287,469    328,508    334,080    328,275    320,315    288,607    284,193    278,267    303,100    331,955    386,717    379,474    368,725    363,029    376,203    404,269    423,223    406,610    406,311    440,899    446,557    447,957    474,483    516,652    586,804    678,442    756,273    869,045    948,829    1,039,590    1,169,823    1,336,583    1,467,257    1,649,013    1,724,946    1,660,089    1,694,622    1,859,511    1,884,537    1,901,320    2,060,917
    a)    Govt. Final Consumption Expenditure    3,837    4,300    5,098    7,844    13,593    23,908    38,076    47,921    66,217    81,404    86,981    121,864    137,555    132,834    127,048    120,051    111,633    113,040    102,240    119,958    127,824    169,128    152,692    130,976    122,552    125,923    144,783    161,795    155,192    154,095    183,804    188,695    184,517    198,148    221,798    262,650    311,082    322,086    345,098    357,015    400,173    488,062    551,179    628,522    739,156    736,139    624,632    630,978    736,234    721,283    761,122    763,741
    b)    Private Final Consumption Expenditure    7,867    8,585    9,533    11,336    17,579    27,098    38,190    68,567    86,572    118,240    137,089    165,605    190,952    201,245    201,226    200,264    176,974    171,154    176,027    183,142    204,131    217,589    226,782    237,749    240,477    250,280    259,486    261,428    251,418    252,216    257,095    257,862    263,440    276,335    294,854    324,154    367,360    434,187    523,947    591,814    639,417    681,761    785,404    838,735    909,857    988,807    1,035,457    1,063,644    1,123,277    1,163,254    1,140,198    1,297,176
    2-    Gross Fixed Capital Formation    3,069    3,515    4,892    7,745    14,242    28,617    48,358    66,767    81,836    93,680    113,438    132,262    130,767    120,238    106,050    83,873    72,695    71,660    62,556    66,392    83,251    100,480    103,955    108,824    93,002    103,316    102,848    109,241    112,959    118,196    123,324    126,095    128,066    148,098    185,872    237,691    288,680    368,687    444,499    414,452    483,921    568,793    614,906    662,455    714,253    732,432    631,838    632,232    646,871    664,690    617,582    737,658
    a)    Private                                                                                    60,946    76,753    87,006    93,061    80,420    90,105    89,934    93,139    100,522    105,238    106,971    108,587    109,945    124,807    155,486    182,751    229,939    284,645    334,617    302,364    322,730    350,849    367,975    412,777    449,791    462,083    437,971    456,722    467,682    502,458    463,707    637,985
    b)    Public                                                                                    22,305    23,727    16,949    15,763    12,582    13,211    12,914    16,102    12,437    12,958    16,353    17,508    18,121    23,291    30,386    54,940    58,741    84,042    109,882    112,088    161,191    217,944    246,931    249,678    264,462    270,349    193,867    175,510    179,188    162,232    153,875    99,673
    3-    Domestic Final Demand    14,772    16,400    19,523    26,925    45,415    79,623    124,625    183,255    234,625    293,324    337,509    419,731    459,274    454,318    434,325    404,188    361,302    355,853    340,822    369,493    415,206    487,198    483,429    477,549    456,032    479,519    507,117    532,464    519,569    524,507    564,223    572,652    576,023    622,581    702,525    824,495    967,122    1,124,960    1,313,544    1,363,281    1,523,511    1,738,616    1,951,488    2,129,712    2,363,266    2,457,378    2,291,927    2,326,855    2,506,381    2,549,227    2,518,903    2,798,575
    4-    Change in Stock    2,351    4,210    3,183    -15,172    35,623    8    21,156    13,254    17,183    5,124    11,964    -363    5,050    33,064    32,342    -3,141    -10,032    -14,797    2,518    3,039    -14,158    -1,516    13,939    15,941    10,051    5,584    7,501    7,468    13,356    12,271    13,958    9,406    11,958    9,651    6,871    10,615    24,885    43,980    87,561    95,884    128,660    110,103    117,616    78,678    101,204    105,996    116,270    112,777    160,812    213,387    111,098    1,441
    5-     Exports of Goods & Services    12,293    17,403    24,668    55,240    101,463    120,656    134,953    150,167    134,571    206,226    347,345    391,591    266,511    171,681    145,530    113,163    85,989    99,045    103,531    120,494    177,685    189,694    200,772    171,065    172,123    200,437    237,812    243,384    163,099    210,231    308,473    273,677    291,155    371,088    494,702    702,164    844,522    934,321    1,210,701    757,711    981,867    1,410,841    1,497,824    1,453,665    1,329,530    817,539    753,225    899,975    1,180,937    1,071,975    690,608    1,086,807
    6-     Imports of Goods & Services    5,218    5,776    7,319    11,588    21,284    35,757    54,794    85,154    113,508    128,736    149,437    187,591    205,502    212,775    190,639    137,892    115,239    119,170    116,352    135,961    138,207    180,199    184,746    166,590    131,976    148,720    158,239    161,782    145,616    140,570    175,973    165,219    168,114    194,041    233,814    306,503    425,038    544,434    662,568    607,759    653,261    742,414    807,023    862,128    957,686    927,402    742,913    757,409    785,960    821,028    682,979    761,044
        Gross Domestic Product    24,198    32,237    40,056    55,404    161,216    164,530    225,940    261,521    272,871    375,938    547,381    623,367    525,334    446,288    421,558    376,318    322,020    320,931    330,519    357,065    440,526    495,177    513,394    497,965    506,230    536,820    594,191    621,534    550,408    606,439    710,681    690,516    711,022    809,279    970,283    1,230,771    1,411,491    1,558,827    1,949,238    1,609,117    1,980,777    2,517,146    2,759,906    2,799,927    2,836,314    2,453,512    2,418,509    2,582,198    3,062,170    3,013,561    2,637,629    3,125,780
    * Preliminary Data
    Annual Growth Rates of Expenditure on Gross Domestic Product at Cu
ent Prices
    (%)
                1971    1972    1973    1974    1975    1976    1977    1978    1979    1980    1981    1982    1983    1984    1985    1986    1987    1988    1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013    2014    2015    2016    2017    2018    2019    2020    2021
    1-    Gross Final Consumption Expenditure        10.1    13.6    31.1    62.5    63.6    49.5    52.7    31.2    30.7    12.2    28.3    14.3    1.7    -1.7    -2.4    -9.9    -1.5    -2.1    8.9    9.5    16.5    -1.9    -2.8    -1.5    3.6    7.5    4.7    -3.9    -0.1    8.5    1.3    0.3    5.9    8.9    13.6    15.6    11.5    14.9    9.2    9.6    12.5    14.3    9.8    12.4    4.6    -3.8    2.1    9.7    1.3    0.9    8.4
    a)    Govt. Final Consumption Expenditure        12.1    18.6    53.9    73.3    75.9    59.3    25.9    38.2    22.9    6.9    40.1    12.9    -3.4    -4.4    -5.5    -7.0    1.3    -9.6    17.3    6.6    32.3    -9.7    -14.2    -6.4    2.8    15.0    11.7    -4.1    -0.7    19.3    2.7    -2.2    7.4    11.9    18.4    18.4    3.5    7.1    3.5    12.1    22.0    12.9    14.0    17.6    -0.4    -15.1    1.0    16.7    -2.0    5.5    0.3
    b)    Private Final Consumption Expenditure        9.1    11.0    18.9    55.1    54.1    40.9    79.5    26.3    36.6    15.9    20.8    15.3    5.4    -0.0    -0.5    -11.6    -3.3    2.8    4.0    11.5    6.6    4.2    4.8    1.1    4.1    3.7    0.7    -3.8    0.3    1.9    0.3    2.2    4.9    6.7    9.9    13.3    18.2    20.7    13.0    8.0    6.6    15.2    6.8    8.5    8.7    4.7    2.7    5.6    3.6    -2.0    13.8
    2-    Gross Fixed Capital Formation        14.6    39.2    58.3    83.9    100.9    69.0    38.1    22.6    14.5    21.1    16.6    -1.1    -8.1    -11.8    -20.9    -13.3    -1.4    -12.7    6.1    25.4    20.7    3.5    4.7    -14.5    11.1    -0.5    6.2    3.4    4.6    4.3    2.2    1.6    15.6    25.5    27.9    21.5    27.7    20.6    -6.8    16.8    17.5    8.1    7.7    7.8    2.5    -13.7    0.1    2.3    2.8    -7.1    19.4
    a)    Private                                                                                        25.9    13.4    7.0    -13.6    12.0    -0.2    3.6    7.9    4.7    1.6    1.5    1.3    13.5    24.6    17.5    25.8    23.8    17.6    -9.6    6.7    8.7    4.9    12.2    9.0    2.7    -5.2    4.3    2.4    7.4    -7.7    0.0
    b)    Public                                                                                        6.4    -28.6    -7.0    -20.2    5.0    -2.2    24.7    -22.8    4.2    26.2    7.1    3.5    28.5    30.5    80.8    6.9    43.1    30.7    2.0    43.8    35.2    13.3    1.1    5.9    2.2    -28.3    -9.5    2.1    -9.5    -5.2    0.0
    3-    Domestic Final Demand        11.0    19.0    37.9    68.7    75.3    56.5    47.0    28.0    25.0    15.1    24.4    9.4    -1.1    -4.4    -6.9    -10.6    -1.5    -4.2    8.4    12.4    17.3    -0.8    -1.2    -4.5    5.2    5.8    5.0    -2.4    1.0    7.6    1.5    0.6    8.1    12.8    17.4    17.3    16.3    16.8    3.8    11.8    14.1    12.2    9.1    11.0    4.0    -6.7    1.5    7.7    1.7    -1.2    11.1
    4-    Exports of Goods & Services        41.6    41.7    123.9    83.7    18.9    11.8    11.3    -10.4    53.2    68.4    12.7    -31.9    -35.6    -15.2    -22.2    -24.0    15.2    4.5    16.4    47.5    6.8    5.8    -14.8    0.6    16.4    18.6    2.3    -33.0    28.9    46.7    -11.3    6.4    27.5    33.3    41.9    20.3    10.6    29.6    -37.4    29.6    43.7    6.2    -2.9    -8.5    -38.5    -7.9    19.5    31.2    -9.2    -35.6    57.4
    5-    Imports of Goods & Services        10.7    26.7    58.3    83.7    68.0    53.2    55.4    33.3    13.4    16.1    25.5    9.5    3.5    -10.4    -27.7    -16.4    3.4    -2.4    16.9    1.7    30.4    2.5    -9.8    -20.8    12.7    6.4    2.2    -10.0    -3.5    25.2    -6.1    1.8    15.4    20.5    31.1    38.7    28.1    21.7    -8.3    7.5    13.6    8.7    6.8    11.1    -3.2    -19.9    2.0    3.8    4.5    -16.8    11.4
        Gross Domestic Product        33.2    24.3    38.3    191.0    2.1    37.3    15.7    4.3    37.8    45.6    13.9    -15.7    -15.0    -5.5    -10.7    -14.4    -0.3    3.0    8.0    23.4    12.4    3.7    -3.0    1.7    6.0    10.7    4.6    -11.4    10.2    17.2    -2.8    3.0    13.8    19.9    26.8    14.7    10.4    25.0    -17.4    23.1    27.1    9.6    1.5    1.3    -13.5    -1.4    6.8    18.6    -1.6    -12.5    18.5
shares
    Expenditure on Gross Domestic Product at Cu
ent Prices
    (Million Of Saudi Riyals)
            1970    1971    1972    1973    1974    1975    1976    1977    1978    1979    1980    1981    1982    1983    1984    1985    1986    1987    1988    1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013    2014    2015    2016    2017    2018    2019    2020    2021*
    1-    Gross Final Consumption Expenditure    11,704    12,885    14,631    19,180    31,173    51,006    76,267    116,487    152,789    199,644    224,071    287,469    328,508    334,080    328,275    320,315    288,607    284,193    278,267    303,100    331,955    386,717    379,474    368,725    363,029    376,203    404,269    423,223    406,610    406,311    440,899    446,557    447,957    474,483    516,652    586,804    678,442    756,273    869,045    948,829    1,039,590    1,169,823    1,336,583    1,467,257    1,649,013    1,724,946    1,660,089    1,694,622    1,859,511    1,884,537    1,901,320    2,060,917
    a)    Govt. Final Consumption Expenditure    3,837    4,300    5,098    7,844    13,593    23,908    38,076    47,921    66,217    81,404    86,981    121,864    137,555    132,834    127,048    120,051    111,633    113,040    102,240    119,958    127,824    169,128    152,692    130,976    122,552    125,923    144,783    161,795    155,192    154,095    183,804    188,695    184,517    198,148    221,798    262,650    311,082    322,086    345,098    357,015    400,173    488,062    551,179    628,522    739,156    736,139    624,632    630,978    736,234    721,283    761,122    763,741
    b)    Private Final Consumption Expenditure    7,867    8,585    9,533    11,336    17,579    27,098    38,190    68,567    86,572    118,240    137,089    165,605    190,952    201,245    201,226    200,264    176,974    171,154    176,027    183,142    204,131    217,589    226,782    237,749    240,477    250,280    259,486    261,428    251,418    252,216    257,095    257,862    263,440    276,335    294,854    324,154    367,360    434,187    523,947    591,814    639,417    681,761    785,404    838,735    909,857    988,807    1,035,457    1,063,644    1,123,277    1,163,254    1,140,198    1,297,176
    2-    Gross Fixed Capital Formation    3,069    3,515    4,892    7,745    14,242    28,617    48,358    66,767    81,836    93,680    113,438    132,262    130,767    120,238    106,050    83,873    72,695    71,660    62,556    66,392    83,251    100,480    103,955    108,824    93,002    103,316    102,848    109,241    112,959    118,196    123,324    126,095    128,066    148,098    185,872    237,691    288,680    368,687    444,499    414,452    483,921    568,793    614,906    662,455    714,253    732,432    631,838    632,232    646,871    664,690    617,582    737,658
    a)    Private                                                                                    60,946    76,753    87,006    93,061    80,420    90,105    89,934    93,139    100,522    105,238    106,971    108,587    109,945    124,807    155,486    182,751    229,939    284,645    334,617    302,364    322,730    350,849    367,975    412,777    449,791    462,083    437,971    456,722    467,682    502,458    463,707    637,985
    b)    Public                                                                                    22,305    23,727    16,949    15,763    12,582    13,211    12,914    16,102    12,437    12,958    16,353    17,508    18,121    23,291    30,386    54,940    58,741    84,042    109,882    112,088    161,191    217,944    246,931    249,678    264,462    270,349    193,867    175,510    179,188    162,232    153,875    99,673
    3-    Domestic Final Demand    14,772    16,400    19,523    26,925    45,415    79,623    124,625    183,255    234,625    293,324    337,509    419,731    459,274    454,318    434,325    404,188    361,302    355,853    340,822    369,493    415,206    487,198    483,429    477,549    456,032    479,519    507,117    532,464    519,569    524,507    564,223    572,652    576,023    622,581    702,525    824,495    967,122    1,124,960    1,313,544    1,363,281    1,523,511    1,738,616    1,951,488    2,129,712    2,363,266    2,457,378    2,291,927    2,326,855    2,506,381    2,549,227    2,518,903    2,798,575
    4-    Change in Stock    2,351    4,210    3,183    -15,172    35,623    8    21,156    13,254    17,183    5,124    11,964    -363    5,050    33,064    32,342    -3,141    -10,032    -14,797    2,518    3,039    -14,158    -1,516    13,939    15,941    10,051    5,584    7,501    7,468    13,356    12,271    13,958    9,406    11,958    9,651    6,871    10,615    24,885    43,980    87,561    95,884    128,660    110,103    117,616    78,678    101,204    105,996    116,270    112,777    160,812    213,387    111,098    1,441
    5-     Exports of Goods & Services    12,293    17,403    24,668    55,240    101,463    120,656    134,953    150,167    134,571    206,226    347,345    391,591    266,511    171,681    145,530    113,163    85,989    99,045    103,531    120,494    177,685    189,694    200,772    171,065    172,123    200,437    237,812    243,384    163,099    210,231    308,473    273,677    291,155    371,088    494,702    702,164    844,522    934,321    1,210,701    757,711    981,867    1,410,841    1,497,824    1,453,665    1,329,530    817,539    753,225    899,975    1,180,937    1,071,975    690,608    1,086,807
    6-     Imports of Goods & Services    5,218    5,776    7,319    11,588    21,284    35,757    54,794    85,154    113,508    128,736    149,437    187,591    205,502    212,775    190,639    137,892    115,239    119,170    116,352    135,961    138,207    180,199    184,746    166,590    131,976    148,720    158,239    161,782    145,616    140,570    175,973    165,219    168,114    194,041    233,814    306,503    425,038    544,434    662,568    607,759    653,261    742,414    807,023    862,128    957,686    927,402    742,913    757,409    785,960    821,028    682,979    761,044
        Gross Domestic Product    24,198    32,237    40,056    55,404    161,216    164,530    225,940    261,521    272,871    375,938    547,381    623,367    525,334    446,288    421,558    376,318    322,020    320,931    330,519    357,065    440,526    495,177    513,394    497,965    506,230    536,820    594,191    621,534    550,408    606,439    710,681    690,516    711,022    809,279    970,283    1,230,771    1,411,491    1,558,827    1,949,238    1,609,117    1,980,777    2,517,146    2,759,906    2,799,927    2,836,314    2,453,512    2,418,509    2,582,198    3,062,170    3,013,561    2,637,629    3,125,780
    * Preliminary Data
    Shares of GDP
    C
    G
    I
    X
    M

Production Function Calculation
    Production function calculations
    Equation:    Y = A*K^alpha*L^(1-alpha)
    Problem 1: given inputs and productivity, find output
    A =    2
    K =    5
    L =    10
    alpha =     XXXXXXXXXX
    Answer:
    Y =
    Problem 2: given inputs and output, find productivity
    Y =    10
    K =    20
    L =    5
    alpha =     XXXXXXXXXX
    Answer:
    A =
Solow Model
    Solow model simulations
    Idea: each date is connected to the previous one
    Inputs (from Penn World Table)
    Y0 =    4.0790    (initial GDP)
    A0 =    3.4299    (initial TFP)
    K0 =    8.2330    (initial capital)
    L0 =    0.4520    (initial labor)
    alpha =    0.3333    (capital share in production function)
    s =    0.2500    (saving/investment rate)
    delta =    0.0600    (deprec rate)
    a =    0.0000    (TFP growth rate)
    n =    0.0000    (labor growth rate)
    Simulation
    Date    TFP    Capital    Labor    GDP    Sav=Inv    Deprec
    2010    3.43    8.23    0.452    4.08    1.02    0.49
    2011    3.43    8.76    0.452    4.16    1.04    0.53
    2012    3.43    9.27    0.452    4.24    1.06    0.56
    2013    3.43    9.78    0.452    4.32    1.08    0.59
    2014    3.43    10.27    0.452    4.39    1.10    0.62
    2015    3.43    10.75    0.452    4.46    1.11    0.65
    2016    3.43    11.22    0.452    4.52    1.13    0.67
    2017    3.43    11.68    0.452    4.58    1.15    0.70
    2018    3.43    12.13    0.452    4.64    1.16    0.73
    2019    3.43    12.56    0.452    4.70    1.17    0.75
    2020    3.43    12.98    0.452    4.75    1.19    0.78
    2021    3.43    13.39    0.452    4.80    1.20    0.80
    2022    3.43    13.78    0.452    4.84    1.21    0.83
    2023    3.43    14.17    0.452    4.89    1.22    0.85
    2024    3.43    14.54    0.452    4.93    1.23    0.87
    2025    3.43    14.90    0.452    4.97    1.24    0.89
    2026    3.43    15.25    0.452    5.01    1.25    0.91
    2027    3.43    15.58    0.452    5.05    1.26    0.94
    2028    3.43    15.91    0.452    5.08    1.27    0.95
    2029    3.43    16.23    0.452    5.11    1.28    0.97
    2030    3.43    16.53    0.452    5.15    1.29    0.99
    2031    3
Answered 6 days After Dec 14, 2022

Solution

Komalavalli answered on Dec 16 2022
34 Votes
According to Minister of Finance Muhammad Al-Jadaan, Audi Arabia anticipates its nominal gross domestic product (GDP) to reach over SR4 trillion in 2022, which will be the first time in the Kingdom's history. Nominal GDP is the market price of the final manufacture of goods and services inside a country in a specific time period using that year's prices, and it's sometimes refe
ed to as modern-day pricing.
Al-Jadaan declared that the nominal GDP will reach SR3.ninety seven trillion ($1.05 trillion) by the end of this yr during a press convention conducted on the occasion of announcing the total finances for the yr 2023. "Expectations indicate that this discern will reach SR3.87 trillion in 2023, then rise to between SR3.9 trillion and SR4 trillion in 2024," he noted.
The Ministry of Finance estimated that the 2023 budget will have a surplus of SR16 billion, a 77.7 percent increase over what it had predicted at the end of September. The cu
ent fiscal year had the first primary surplus in 9 years, at SR102 billion.
Despite the country's reliance on the energy market, the administration is confident in its capacity to utilize its financial resources. In light of this, the Ministry of Finance has forecast overall budget income for next year at roughly SR 1.13 trillion and total spending at SR 1.114 trillion.
Saudi Arabia will overtake Canada, the United Kingdom, and Switzerland as the world's sixth-richest economy in terms of GDP per capita by 2050. According to the estimate, the oil-rich kingdom would be the richest country in the Middle East by GDP per capita by 2050, with the median income of the citizens of Saudi Arabia being $98,311 per year in year 2050. We think that emerging Asia and Africa will be the fastest rising regions, driven by population growth and per capita income, followed by the Middle East, Latin America, Central and Eastern Europe. Today, Europe, the CIS, and advanced nations are all involved.
GDP Long term forecast
Source: OECD
From above graph it is evident that Saudi Arabia economic growth would overtake Canada after 2030. Middle East will contribute 4% of global GDP by 2030 and 5% by 2050. Saudi Arabia's non-oil zone will play an increasingly important role in the economy since the government's drive to diversify the economy away from the hydroca
on zone would boost non-public intake and gross constant capital formation (GFCF).
Solow model
    
    
    
    
    
    
    
    
    
    
    
Solow model indicate that output continuous to grow as depreciation rate low compare to the savings rate, we can say that there is a positive co
elation between output growth and savings rate.
Forecast of oil activities real GDP and non oil activities Real GDP
The above graph indicates both oil and non oil activities real GDP grows over the period of time at smaller amount and it sees a tremendous growth after the year 2049, growth of non oil activities...
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