Exercise 3

In recent decades, the total fertility rate in Saudi Arabia has been declining: from more than 7.2 in the 1960s and 1970s to 2.3 in 2018. What are the economic implications of this trend?

I am not specifying any context: you are supposed to choose (and clearly indicate in your answer) what particular area you focus on. It could be a specific market or the whole economy; it is up to you. Note that the question is about one-way causality: you are to explain what a decreasing fertility causes, instead of explaining what causes a decline in fertility. Ideally, your essay is accompanied by data and graph(s).

Data source: World Bank, https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?locations=SA