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Nowcasting Real GDP for Saudi Arabia1

Author

Listed:
  • Ryadh M. Alkhareif

    (Deputy Minister for International Affairs, Ministry of Finance)

  • William A. Barnett

    (University of Kansas)

Abstract

The paper constructs monthly GDP nowcasts for Saudi Arabia by estimating a Generalized Dynamic Factor Model (GDFM) on a panel of 272 variables over the period from January 2010 to June 2018. The GDP nowcasts produced in this paper can accurately mimic GDP growth rates for Saudi Arabia, including for the non-oil sector. Our GDFM has outperformed other traditional models in tracking the business cycle in Saudi Arabia. In our view, the non-oil private sector GDP nowcasts provided in this paper can substitute the traditional set of indicators used to monitor monthly private sector activity.

Suggested Citation

  • Ryadh M. Alkhareif & William A. Barnett, 2022. "Nowcasting Real GDP for Saudi Arabia1," Open Economies Review, Springer, vol. 33(2), pages 333-345, April.
    • Handle: RePEc:kap:openec:v:33:y:2022:i:2:d:10.1007_s11079-021-09634-6
    DOI: 10.1007/s11079-021-09634-6
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    References listed on IDEAS

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