Aggregate Supply

Changes in AS/LARS in Saudi Arabia

 Saudi Arabia has seen has a decline in its labor productivity growth and unemployment rate since 2019. As of January 2021, its unemployment rate is %7.4  and as of December 2020, its labor productivity growth was %-3.586. 

The GDP per hour worked is unavailable for public viewing, this could reflect their political standings and what they want other countries to know about them 

Labour Productivity 

Unemployment Rate 

Saudi's Exports 

Saudi Arabia has a vital role in meeting world energy needs because it has over 25 percent of the free world's known oil reserves and the ability to increase or decrease oil production. Consequently though, with their immense amount of oil production, their greenhouse gas emissions continue to rise which could cause environmental problems in the long run. However, since 2014 oil prices have fallen steadily and Saudi can no longer rely on their oil revenue and public spending to grow their economy due to the change in global markets and demographics, this has put Saudi in a crisis of sorts. And with statistics forecasting a large population increase in the coming years, they need to generate more labor-intensive jobs in order to deal with the incoming workforce, such as education and health. The oil industry alone does not have the capabilities to create enough jobs.  
Saudi Arabia's commercial sector is growing rapidly. This is mainly due to generous government incentives such as the provision of long-term interest-free loans and support services and facilities. In addition, the chambers of commerce and industry in the major cities and regions promote commercial ventures. (The Embassy of the kingdom of Saudi Arabia) 
Even though the economy of Saudi is still built around their oil sector, they have taken different steps to further diversify their economy. Non-industrial products make up 90% of their non-oil exports. These include Petrochemicals, plastics, metal goods, construction materials, and electrical materials. These goods are exported to nearly 90 different countries. Saudi is using natural gas/liquids as well as refined products from the oil industry to manufacture products that would feed their non-oil industries. 

the country forecasts a population increase, so the need to come up with labor
intensive projects by 2030 to absorb the upcoming working class.
the country forecasts a population increase, so the need to come up with labor
intensive projects by 2030 to absorb the upcoming working clas
the country forecasts a population increase, so the need to come up with labor
intensive projects by 2030 to absorb the upcoming working clas
the country forecasts a population increase, so the need to come up with labor
intensive projects by 2030 to absorb the upcoming working class
While Saudi Arabia is definitely making economic decisions that will shift their LRAS towards the right, as of right now with this information, we can assume that the SRAS of Saudi Arabia has shifted to the left in the last two years. 



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