Question

Discuss the impact of COVID-19 pandemic crisis on the GDP of Saudi Arabia.

Answer 1

Answer - Saudi Arabia had to face two back to back economic shocks. The oil market shock which was followed by the corona virus pandemic. Due to crash of oil market , the GDP of the nation deeply fell . Followed by corona virus , the IMF has indicated the GDP to fall to 2.3 %. The government has to reduce its expenditures and various allowances , it had to increase the VAT rates in order to bring a rise in earning of government. With the curfew in place due to virus , the nation has been shut down and all economic activities have stopped. This will lead to the heavy decline in GDP due to reduction in income and employment.