Saudi Arabia is expected to grow at its fastest pace in a decade and will be the fastest growing of the world’s largest economies in 2022. The country will outpace China, India, Indonesia, South Korea, and Taiwan, growing much faster than the struggling major economies in western Europe and North America. It will leave other large emerging economies in its wake, EIU, the research, and analysis division of The Economist Group said in a report. (patchhawaii.org)
Saudi Kingdom’s gross domestic product is anticipated to expand at the fastest rate since 2011—7.5 percent this year
The Report added that real GDP growth is expected to reach 7.5% in 2022, which would be Saudi Arabia’s fastest rate of growth since 2011 and place it at the top of the economic growth chart for the world’s 20 largest economies (measured in US dollars at purchasing power parity). Saudi Arabian real GDP growth will be close to a solid 5% in 2023 before slipping back to the reasonably strong growth of about 3% in 2024-26.
According to the research, increased energy costs, increased oil and gas output, significant investments in the energy and non-energy industries, and the successful implementation of a comprehensive COVID-19 immunization campaign are the main drivers of the Kingdom’s economic growth.
Gross domestic product is expected to expand by 7.6%, the fastest growth in almost a decade, according to IMF’s recent Article IV consultation report.
What about inflation?
Despite higher prices for imported commodities, inflation will remain contained at 2.8% in 2022 as the central bank tightens policy in line with the US Federal Reserve. Public finances and the external position will strengthen substantially thanks to increased non-oil revenue and higher proceeds from oil exports. Reserve buffers will remain ample, the IMF said. The current account balance of Saudi Arabia is predicted to be in surplus in 2022, amounting to roughly $163 billion, up from $44 billion in 2021.
“Pro-business reforms have made it easier to start a business and easier for foreign companies to invest in the economy, both of which are fundamental to the Kingdom’s long-term development plans under the Vision 2030 strategy,” the report said.
“Liquidity and fiscal support, reform momentum under Vision 2030, and high oil prices and production helped the economy recover with robust growth, contained inflation, and a resilient financial sector,” said the IMF in a press release
