Riyadh, March 10, 2024, The General Authority for Statistics (GASTAT) has announced the adoption of the chain-linking methodology for calculating the real GDP in Saudi Arabia. This methodology, a departure from the previous fixed base year approach, is a significant step in economic measurement. Saudi Arabia stands out as the first country in the Gulf, Arab regions, and among the first G20 nations to implement this methodology. The chain-linking method is praised for its ability to estimate real growth rates, considering the impact of price changes and providing flexibility in dealing with economic activities. It enables accurate reflection of economic conditions, production structure, and consumption patterns, allowing for clearer international comparisons. International statistical organizations advocate for adopting chain-linking methodology for accurate reflection of real growth and effective monitoring of national-level developments.
