Saudi Arabia’s GDP is estimated to become 60% more resilient to oil price shocks by 2030, according to a new study by the King Abdullah Petroleum Studies and Research Center (KAPSARC).
The study, “Resilience of Saudi Arabia’s Economy to Shocks: Effects of Economic Reforms,” employs a KAPSARC model that mimics the economy’s response to external shocks. The study examines the “extent to which the implementation of Saudi Vision 2030 policies enhances the Saudi economy’s resilience to oil price and production shocks, and to the productivity of tradable and non-tradable goods.”
Vision 2030’s economic reforms will make Saudi households’ consumption 40% less volatile, stabilize economic activity, employment levels and household income, improving the overall well-being of households in the long-term, the KAPSARC study said.
“As expected for the world’s largest oil exporter, oil price shocks are a major source of macroeconomic fluctuations. Ending this vulnerability is the core of Vision 2030, as the Kingdom aims to diversify its economy,” Dr. Axel Pierru, KAPSARC’s energy macro and microeconomics program director, said.
[Click here to read more from KAPSARC and download the study]
