An IMF technical study published last month finds that oil prices have historically been the key variable affecting Saudi Arabia’s economic performance, and that “a longer-lasting period of low oil prices has a more significant impact” than a temporary drop.
So far, so obvious. But, not only does the study, which looks at “the impact of [historic] oil price declines and interest rate increases on the Saudi economy,” find oil price to be a far more important determinant of macroeconomic and financial outcomes than interest rates, it struggled to find anything else that matters. (CONTINUED - 937 WORDS)
