Saudi Nominal Economy Surpasses $1 Tn for First Time

The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)
The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)
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Saudi Nominal Economy Surpasses $1 Tn for First Time

The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)
The Saudi economy is witnessing rapid growth due to recent government initiatives (Asharq Al-Awsat)

A recent report revealed that the Saudi economy has greatly surpassed challenging global conditions over the past three years, starting from the coronavirus pandemic and extending to the Russian-Ukrainian crisis and the subsequent global inflation wave.

As a result, the Kingdom has outperformed the economic growth of G20 countries in 2022, surpassing the trillion-dollar nominal value for the first time in history.

Data from the General Authority for Statistics (GASTAT) revealed a 3.8% increase in Saudi Arabia's real gross domestic product (GDP) during the first quarter of 2023, compared to the corresponding period in 2022.

According to the report, released by the Ministry of Economy and Planning on Sunday, Saudi Arabia has implemented numerous programs, initiatives, and structural reforms since the launch of “Vision 2030.”

These efforts aim to ensure stability, achieve sustainable development, and enhance the overall productivity of the economy.

Despite the continued role of the oil sector as a significant contributor to budget financing, the non-oil sector has witnessed an increase in its share of the GDP, noted the report.

This growth has been supported by government facilitations and programs that have provided a conducive environment for the growth of the private sector, it added.

The report predicted that the pace of this structural transformation towards sustainable economic growth will continue in the coming years.

This progress is expected to contribute to the ongoing advancement of the Saudi economy among the world’s largest economies.

The report emphasized that internationally recognized indicators endorse the significant changes happening in the Kingdom.

These changes are a result of the economic reforms driven by “Vision 2030,” which have received praise from various organizations in their thorough reports during 2022.

Additionally, reputable credit rating agencies have raised the Kingdom’s sovereign credit ratings and improved their outlook for the future of the Saudi economy.

As per the report, “Vision 2030” aimed to transform the structure of the Saudi economy into a diversified and sustainable economy.

This transformation focuses on enhancing productivity, increasing the contribution of the private sector to economic wealth creation, and engaging it in achieving the goals of the vision.

It is worth noting that the Economy and Planning Ministry publishes the report as part of providing regular, accurate, and detailed updates on the performance of both the global economy and the Kingdom’s economy.

The data for the report is gathered from various government sources, including GASTAT, the Saudi Central Bank, the Ministry of Finance, as well as international institutions.



European Shares Sink as Trump's Aggressive Tariffs Escalate Trade War

Representation photo: The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, February 15, 2018. REUTERS/Staff/Remote
Representation photo: The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, February 15, 2018. REUTERS/Staff/Remote
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20

European Shares Sink as Trump's Aggressive Tariffs Escalate Trade War

Representation photo: The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, February 15, 2018. REUTERS/Staff/Remote
Representation photo: The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, February 15, 2018. REUTERS/Staff/Remote

European shares slumped to a two-month low on Thursday, with trade-sensitive Germany hit the hardest, as a fresh round of aggressive US tariffs escalated a global trade war and stoked fears of an economic slowdown.

The pan-European STOXX 600 dropped 1.7% at 0712 GMT with German equities shedding 2.4%, the most among regional markets. Wall Street futures sank 3.1% as investors shed riskier assets in favor of safe-haven bonds and gold, reported Reuters.

US President Donald Trump's move to slap a 10% tariff on most goods imported to the United States effectively raised the rate of levies on the European Union to 20% and China to 54%, with both trading partners vowing countermeasures.

Euro zone banks, sensitive to the economic outlook, dropped 3.1% as traders ramped up bets of interest rate cuts from the European Central Bank, even as the trade war threatened to stoke inflation.

The bank-heavy indexes in Italy and Spain fell 1.7% and 1.4%, respectively.

Defensive sectors such as utilities, food and beverages sector, real estate and healthcare eked out gains.