GDP growth & GDP components

What happened to the GDP in general and the GDP by economic activity on table 1 or table 4 (table 4 is easier) during the pandemic? Which sector has been affected more during the pandemic and why would you think this sector has been affected more?
One of the most important targets for the Vision 2030 is to switch the production in Saudi Arabia from mostly depending on Oil to diversify its production, would you think we are going into the target of diversifying production through looking at the tables 15 & 16 (table 16 is easier to see because it shows the growth) from 2018 to 2021. You can also look at tables 8 and 10 for annual data.

Sample Solution

A late developing state broadly needs two steps to become a successful sustainable industrial growing economy. The first step would be bringing
Industry up to par with global competitors, and the second would be introducing competition as a mechanism to increase discovery. The former obviously needs to precede the latter for effective and sustained growth.

In the interest to achieve the goal of brining domestic industries up to par, the state would need to bring about successful ‘Import substitution’, which can be done through levying two major policies –Tariff Protection and Subsidies.

Tariff protection is fiscally most feasible way to promote the sunrise industry in the country. High import tax on automobiles in Japan after World War II is an example of how a state policy can nozzle the imports into the country. This effort was made to give a boost to Import Substitution. Japan’s automobiles may be a popular case of high import tariffs, but long before that, Britain in the 14th century, had aggressively shielded it’s infant industry in the same method, and levied high tariffs on manufacturing products even as late as the 1820s (Chang, H.J., 2010).

Tariff protection also includes ‘quotas’ and ‘local content management’ which have been argued to yield higher welfare than the tariff itself (Melitz, M. , 1999) . With the introduction of the GATT dictating tariff cuts and regulations on ‘goods’ as well as ‘agriculture’ since 1947, which post 1994, took form of the World Trade Organization, but withholding the same text regarding tariff regulation- it would make sense to agree with Meltiz’s idea that quotas and local content are better policy instruments.

Providing subsidies by the state is another powerful policy means by which can be welfare enhancing, and with help of which, the Import Substitution can be successfully brought about. However, it is important to note that the state must be careful in this provision. Firstly, initial subsidies should never be so high as to cause domestic output to decrease at any point in the future (Melitz, M., 1999) Secondly, industries should be carefully selected for the provision of subsidies.
It is of the essence that subsidies be provided to advance Primary Industries.

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