Action Items
- Locate an article on the SEU Digital Library that applies to a relevant topic that you want to learn about in this course.
- Post a thread in the Discussion Board that describes this article and why you feel it is relevant to this class. Your post should be a approximately 2 -3 paragraphs (150-200 words)
- Respond to another student’s post before the end of the week. Consider and reflect on your fellow student’s point of view. Simply saying that you agree or disagree is not a sufficient response.
- Bring your article to class for discussion.
https://sdl.edu.sa/SDLPortal/ar/Publishers.aspx
Response 1
Affected by the epidemic, GDP shrank by 11.7%. The GDP is also affected by economic activities, as almost all economic activities in 2020 will be affected by the epidemic, with mining and quarrying being among the economic activities most affected by the epidemic. The mining and quarrying industry was affected by the epidemic by 35.7% in 2020
Table 4 shows that the average change in GDP is 11.7%. Table 4 also shows that the mining and quarrying business will suffer the largest loss in 2020, at 35.7%. Economic activity will also contract almost completely in 2020 (based on the data in Table 4).
Exactly: it is. The data indicates that the non-oil sector has been affected by the epidemic, with the exception of the first and second quarters. However, compared to the oil sector and GDP excluding imports, this sector is still able to maintain more stable growth.
In addition, the country’s highly dependent oil sector contracted steadily from the first quarter of 2019 to the first quarter of 2021 (it only increased in the fourth quarter of 2020). This means that the state is slowly getting rid of its dependence on the oil sector and gradually switching to the non-oil sector, and stability is evidence.
Growth of the non-oil sector from 2018 to 2021. If this trend continues, Saudi Arabia can achieve its targets by 2030. Table 16 shows that the oil sector has been shrinking since the first quarter or 2019, which shows that Saudi Arabia is slowly getting rid of its dependence on the sector.
On the other hand, Table 16 shows the stability of the growth of the non-oil sector with the exception of two quarters. If we compare it with the oil sector, we can conclude that compared to the oil sector, the growth of the non-oil sector is more stable, which is consistent with Saudi Arabia’s goal of diversifying production by 2030.
Reference: Daly, L., & McElwee, S. (2014). Forget the GDP. Some states have found a better way to measure our progress. New Republic, 3.
Response 2
- GDP overall shrank by 11.7% due to the pandemic. The GDP was also affected by economic activity as almost all economic activities were affected by the epidemic in 2020. Specifically, mining and quarrying was the largest economic activity affected by the epidemic. Mining and quarrying contracted by 35.7% during 2020 due to the pandemic. Table 4 shows that the average change in total GDP was 11.7%. Table 4 also shows that the mining and quarrying business incurred the largest loss during the year 2020 by 35.7%. Economic activity contracted almost completely during 2020 as well (based on the data in Table 4).
- Yes, as shown in the data, the non-oil sector was able to maintain its growth except for the first and second quarters due to the pandemic. However, the sector was still able to maintain its growth more stable compared to the oil sector and GDP excluding imports. Moreover, the oil sector, on which the country has been highly dependent, is seen in a steady contraction from the first quarter of 2019 to the first quarter of 2021 (it only grew during the fourth quarter of 2020). This means that the country is slowly moving away from its dependence on the oil sector, and is gradually shifting to the non-oil sector, as evidenced by the stable growth of the non-oil sector in the period from 2018 to 2021. If this trend continues, Saudi Arabia can achieve its goal by 2030. Table 16 shows that the oil sector has been shrinking continuously since the first quarter or 2019, which indicates that Saudi Arabia is slowly moving away from the front of dependence on it. On the other hand, Table 16 shows that the growth of the non-oil sector is stable except for two quarters. If we want to compare it with the oil sector, it can be inferred that the non-oil sector enjoys more stable growth compared to the oil sector, which parallels the goal of Saudi Arabia to diversify its production by 2030.
References:
- Mitchell, J., Smith, R. J., Weale, M. R., Wright, S., & Salazar, E. L. (2005). An indicator of monthly GDP and an early estimate of quarterly GDP growth. The Economic Journal, 115(501), F108-F129.?
- Ghosh, T., L Powell, R., D Elvidge, C., E Baugh, K., C Sutton, P., & Anderson, S. (2010). Shedding light on the global distribution of economic activity. The Open Geography Journal, 3(1).
