October 18, 2025Open Access

Measuring the Macroeconomic Variables Affecting the GDP of the Kingdom of Saudi Arabia - during (1980-2021)

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Descriptive analysis shows positive links between GDP and government spending, capital formation, suggesting economic diversification is needed.

All macroeconomic variables assessed significantly impact the GDP in the long run except inflation.
An increase in government spending and gross capital formation positively influences GDP, raising it by 1.538 and 3.389 units respectively.
A negative correlation exists between GDP and imports, where one-unit increase in imports decreases GDP by 3.063 units.
The study emphasizes reducing oil dependency to diversify economic income sources for better stability.

Mohammed Saud Almohaimeed (2025) studied this question.

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Descriptive analysis shows positive links between GDP and government spending, capital formation, suggesting economic diversification is needed.