Based on its role in developing the statistical sector, the General Authority for Statistics adopted the chain-linked methodology in the national accounts to calculate the real GDP. The publication of Q4, 2023 and the annual publication of the same year will be published using the new methodology instead of the previous methodology that was based on utilizing the fixed base year.
Saudi Arabia is the first country in the Gulf and Arab regions and among the first G20 countries that implement the chain-linked methodology. This dynamic methodology is thought to be a useful tool for estimating the real growth rates of national accounts and for measuring economic growth rates using weights and prices from the prior year as a benchmark to provide measurements within adjacent time periods. It accurately reflects the current economic conditions of any country that employs it.
Expert statisticians in the field of national accounts have pointed out that the chain-linked methodology takes into account the impact of price changes, flexibility in dealing with economic activities along with their continuous updating and accurately reflects economic changes. It also considers production structure and consumption patterns, allowing for clearer international comparisons. International statistical organizations and bodies concerned with national accounts systems urge countries worldwide to adopt the chain-linked methodology instead of the previous methodology that used a fixed base year for weights and prices, in order to accurately reflect real growth at the national level and monitor developments and achievements effectively.
It is worth mentioning that the Gross Domestic Product publication is one of the releases issued by the General Authority for Statistics on a quarterly and annual basis to provide estimates of the GDP for the relevant period, expenditure components, measure the contribution of economic activities and various regulatory sectors, as well as provide modern annual economic indicators such as GDP growth rates, relative contributions of economic activities, and regulatory sectors to the GDP according to the latest international systems. It also includes many analytical tables highlighting the tracks of the national economy.
National accounts publications also contribute to meeting the requirements of the Kingdom Vision 2030, regional requirements to understand the national economy, including the statistical center of the Gulf Cooperation Council, the Arab Monetary Fund, the League of Arab States, in addition to international requirements such as those of the World Bank, the International Monetary Fund, the Organization for Economic Cooperation and Development, and others. The General Authority for Statistics website provides more details about its statistical products.