RIYADH, SAUDI ARABIA – The General Authority for Statistics (GASTAT) said in a press release it issued on Sunday that it has adopted the chain-linking methodology to calculate the real GDP in the country.
The Q4 2023 results and the annual results for the same year have been reached at by using the new methodology instead of the previous methodology that was based on utilizing the fixed base year.
According to the release, Saudi Arabia is the first country in the Gulf and Arab regions, and among the first G20 countries, to implement the chain-linking methodology.
This is thought to be a useful tool for estimating the real growth rates and for measuring economic growth rates using weights and prices from the prior year as a benchmark to provide measurements for adjacent time periods.
It accurately reflects the existing economic conditions of any country that employs it.
The release said that expert statisticians pointed out that the chain-linking methodology takes into account the impact of price changes and flexibility in dealing with economic activities, along with their continuous updating and accurately reflects economic changes.
It also takes into consideration production structure and consumption patterns, allowing for clearer international comparisons.
International statistical organizations and bodies concerned with national accounts urge countries worldwide to adopt the chain-linking methodology rather than the methodology that uses a fixed base year for weights and prices, in order to accurately reflect real growth at national level and effectively monitor developments and achievements.