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.



UNCTAD: 'Painful' Cuts Threaten Our Task to Help Developing Countries

UNCTAD Secretary-General, Rebeca Grynspan (AFP) 
UNCTAD Secretary-General, Rebeca Grynspan (AFP) 
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UNCTAD: 'Painful' Cuts Threaten Our Task to Help Developing Countries

UNCTAD Secretary-General, Rebeca Grynspan (AFP) 
UNCTAD Secretary-General, Rebeca Grynspan (AFP) 

The United Nations Conference on Trade and Development (UNCTAD), tasked with helping developing countries access the global economy, faces “painful” cuts as part of broader reforms prompted by a decline in global donor funding, its secretary general has said.

Rebeca Grynspan told Reuters she was concerned the agency’s work will be hampered while demand for its services grows, as countries seek information on the impact of sweeping tariffs imposed by US President Donald Trump.

For UNCTAD's 2026 budget, Grynspan said she and her team had proposed cutting 70 posts. That is from an overall headcount of 500 including consultants, with about 400 permanent posts.

“This is painful. There's no way to disguise this ... we haven't cut that number of posts ever in one budget,” she said.

“It really will constrain the organization and the things that we can do”.

UN agencies like UNCTAD are having to cut costs amid a financial crisis triggered in part by the US, which has provided nearly a quarter of the world body's funding, and longer term liquidity problems.

“What worries me the most is the possibility to respond to countries in their needs fast enough,” Grynspan said.

Grynspan, who is part of the task force on broader UN80 reforms to improve efficiency and cut costs at the UN, said she was involved in discussions on how to better divide tasks among the UN's development agencies through collaboration.

The UN Secretariat, the global body's executive arm, is preparing to slash its $3.7 billion budget by 20%.

About 75 agencies and departments faced a June 13 deadline to propose budget cuts.

The UN in Geneva is proposing leaving the historic Palais Wilson, which houses its human rights office.

The final decision on UNCTAD's proposed budget will be made by the UN Secretariat and member states in September.