Rebuttal of Dr. Usamah Uthman's Review in Global Finance Journal No 22 (2011) pp 80-81

摘要

1. The reviewer's definition of business cycles is correct in terms of actual vs. potential GDP during booms and recessions. Figure 2.2 indicates exactly these swings for different eras of Saudi GDP, and not income flows. The different underlying reasons for this volatility are explained. Figure 2.3 demonstrates the clear inter-relationships of all three factors affecting Saudi Arabian economy (govt. expenditure, oil revenues, and flows into savings/investments), as well as the important element of foreign owned factor resources (remittances) affecting the Saudi economy. The table that follows illustrates the actual magnitude of such remittance flows, which is also another unique feature of the Saudi economy, in comparison to Saudi population, GDP and other countries with large foreign labor force.