Saudi Arabia is a Middle Eastern country that lies on the Arabian Peninsula.. Saudi Arabia’s large oil reserves are well-known. Saudi Arabia is one of the world’s most prosperous countries. Saudi Arabia is considered poor despite its wealth ️ 1️⃣ 🔛 🇸🇦 !
Saudi Arabia’s Gross Domestic Product (GDP) per capita is estimated to get around $20,000, making it one of the highest in the region!! Unfortunately, poverty rates in the country remain at 20% – an increase since 2000 caused largely by falling oil prices over recent years.
A high rate of unemployment is also a problem in the country, which has been estimated to be 12%. The rate of unemployment is much higher than that at 5% globally. The lack of opportunities and economic growth for most of the country’s population is the main reason. Nearly 90% of GDP is generated by the oil and natural gas sector. There is little opportunity for job growth and economic diversification in the other sector.
The lack of economic diversification also means that the country is heavily dependent on oil revenues which are volatile and subject to global economic conditions. This has caused the country to become more vulnerable to economic downturns and global economic shocks .
Another issue facing the country is its high level of public debt. The public debt of Saudi Arabia has been increasing since the end of 2016, and is now estimated to stand at over 190% of the country’s GDP. This high level of public debt is a major concern for the country, as it has the potential to lead to economic instability and further weaken the nation’s economy.
The government of Saudi Arabia has taken some steps to address the problem of poverty, but the nation still faces a many challenges, for example the high level of income inequality that sees the richest 20% of the population controlling 55% of the country’s wealth, which has the potential to cause further economic and social instability in the nation ️ 🇸🇦.
Aside from that, the country’s infrastructure is inadequate, particularly in the poor areas of the country. This entails access to basic services for instance, health care, education, and transportation. It is also worth noting that the country has a large informal economy which accounts for a significant portion of the country’s GDP. This informal sector often goes unnoticed and its contribution to the country’s total GDP is largely ignored .
Despite being a wealthy country Saudi Arabia is still considered to get a poor country. This is largely due to the country’s high inequality levels, heavy dependence on oil revenues, and inadequate infrastructure. However the government has taken steps to address these issues and the country is now on a path to economic recovery ️ 🔛. It remains to get seen how successful the country will be in improving its economic situation, but it is clear that the country still has a long way to go before it can be considered a wealthy nation ️. !! .
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