The economy of the kingdom of Saudi Arabia has been well en-route to secure its fastest pace of GDP (Gross Domestic Product) growth since 2011, as both oil and non-oil sectors appeared to have expanded by a substantial scale.
If truth is to be spoken, a number of plans from Saudi’s Crown Price Mohammed bin Salman, apparently the most visionary leader that the Kingdom had witnessed over recent past, to sway the country’s GDP growth away from oil products in a bid to decrease oil dependency appeared to have played a crucial part to reach an 8.9 per cent GDP growth this year.
On top of that, the mesmerizing figure from the Mideast G20 nation came against the backdrop of a baleful landscape in global economy, while a number of G7 nations alongside China-export oriented economies like of Australia and New Zealand are bracing for a bruising recession as early as by early-2023.
Besides, a swathe of US heavyweight lenders including Morgan Stanley alongside Goldman Sachs among others had forecasted that a recession in the US would likely to take place as early as by the first quarter of 2023.
Saudi Arabia’s 2022 GDP set for fastest pace in 11 years
Meanwhile, as Riyad Capital said in a report that the Kingdom’s economy has been well en-route to seize an almost double-digit GDP growth this year, Riyad Capital’s Chief Hans Peter Huber said in a statement, “The primary growth driver has been the oil sector which we forecast to expand by 15.7% in 2022, the strongest yearly growth rate since 2003.
With a view on these still high oil prices, we expect fiscal revenues to remain strong in 2023. This will allow fiscal spending to be focused on economic growth and yet, still generate a surplus of the magnitude of 1.9% of GDP (after 2.3% in 2022)”.
According to the report, Saudi Arabia’s non-oil sector grew by 5.2 per cent this year, while the sector is forecasted to grow by 4.4 per cent next year.