Which country has the largest (percentage) ramp-up fiscal stimulus?

According to the IMF it is Saudi Arabia: 

Saudi Arabia responded to the crisis with the largest fiscal stimulus relative to GDP in the G-20, which the IMF deemed appropriate. The IMF website forecasts real GDP growth to be 4 percent for Saudi Arabia in 2010.

By the way:

The International Budget Partnership (IBP), an organization dedicated to evaluating fiscal transparency in countries throughout the world, gave Saudi Arabia a score of 1 percent in its 2008 Open Budget Index (OBI). This score leaves Saudi Arabia ranked 79 out of 85 countries surveyed.

There is basically no accounting or public recording of how the money is spent. 

I don't consider this a valid test case for ramp-up stimulus in general, in part for lack of transparency and also because the Saudi economy is so closely tied to the price of oil.  Nonetheless it will be interesting to see how this develops.


Graph here


What is the relevance of "fiscal stimulus" in a country whose GDP is based on extraction of state owned mineral wealth, which is then either shared with the elite or distributed to the populace?

What would you expect?

Sounds irrelevant as an observation applicable to non-state, non-resource based economies.

Or, maybe it is relevant to .... Alaska. You can take the oil proceeds and distribute them to the voters before an election.

Maybe that's the point.

Got it.

Oil stimulus.

Go Sarah. Go.

I forget where I heard it, but yesterday a story on China's infrastructure spending, stated 90% of the GDP growth in 2009 was from China's infrastructure investment, lots of projects already in progress accelerated to ensure continued high growth to prevent high unemployment.

It seems to me China ramped up GDP growth a lot more than 4%.

More desert?

Comments for this post are closed