Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

World Bank Upgrades Saudi Arabia’s Growth Forecast in 21/22

World Bank Upgrades Saudi Arabia’s Growth Forecast in 21/22

Thursday, 10 June, 2021 - 09:15
File photo of The World Bank logo (Reuters)

Saudi Arabia is forecast to grow 2.4 percent this year and 3.3 percent in 2022, according to a World Bank report.

Previous estimates suggested that the Saudi economy was set to grow 2 percent in 2021 and 2.2 percent in 2022.

The report explained that its forecast changed following positive developments that took place during the pandemic, in addition to higher oil prices and tapering oil production cuts, and the start of a new government investment program.

The World Bank believes that in Saudi Arabia, “additional oil production cuts deepened the contraction in the oil sector but was offset by improving growth momentum in the non-oil sector.”

The World Bank stated that in oil exporters, higher oil prices will support growth and government revenue recoveries.

“Oil prices are expected to average $62 per barrel in 2021 and 2022.”

Meanwhile, the Regional Economic Outlook report issued by the International Monetary Fund (IMF), estimates the growth of non-oil GDP of the Gulf Cooperation Council (GCC) countries to hit 3.5 percent in 2021, and then 3.4 percent in 2022.

Regarding Saudi Arabia, it expects the Kingdom's economy to grow 2.9 percent in 2021, while it is expected to reach 4 percent in 2022.

For its part, the Institute of International Finance (IIF) announced in its latest report that the Kingdom’s GDP will grow 2.4 percent this year, while it will jump to 3.1 percent in 2022.

The Saudi Central Bank (Sama) reported in its recent data an increase in the value of point of sales (POS), which expresses the volume of direct individual consumption in the country. It increased 3 percent last week to reach SR9.4 billion, compared to SR9.17 billion during the previous week.

Editor Picks