Boosted by high energy prices, massive investments in energy and non-energy sectors, and rising oil and gas production, Saudi Arabia is set to become one of the world’s fastest-growing economies in 2022. According to an Economist Intelligence report, the kingdom’s GDP is set to reach 7.5% this year, leaving behind Asian giants like China and India.
In 2023, Saudi’s GDP growth will be around 5%, the report noted, while adding that the regulatory reforms in the kingdom are improving the business environment and attracting foreign investments. The growth, however, will slip to around 3% between 2024 and 2026.
“Pro-business reforms have made it easier to start a business and 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.
The kingdom’s current account balance in 2022 is also poised to show a surplus of about $163 billion, up from $44 billion last year.
Consumer price inflation is expected to show a downtick of about 2.5% this year, and lower further in 2023, as the Saudi Central Bank tightens its monetary policy in line with the US Federal Reserve.
Last month, the International Monetary Fund predicted Saudi Arabia’s GDP rate to expand by 7.6% in 2022, with an inflation rate of around 2.8%.
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