Saudi GDP Expected to Grow to $895 Bln in 2025

An economic indicator that expects Saudi GDP to continue growing in coming years (Asharq Al-Awsat)
An economic indicator that expects Saudi GDP to continue growing in coming years (Asharq Al-Awsat)
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Saudi GDP Expected to Grow to $895 Bln in 2025

An economic indicator that expects Saudi GDP to continue growing in coming years (Asharq Al-Awsat)
An economic indicator that expects Saudi GDP to continue growing in coming years (Asharq Al-Awsat)

A Saudi economic indicator announced on Wednesday its estimates that the Kingdom's GDP will reach SAR 3 trillion ($895 billion) in 2025, emphasizing the balanced growth of the national economy during the last period.

The index, run by the Research and Information Center at the Chamber of Commerce and Industry in Riyadh, was based on several vital pillars that contributed to real GDP growth in 2021.

Those pillars center around the Kingdom’s free economy policy, its active and positive role that has a global impact, Saudi support and stimulation of local and foreign investment, and the Kingdom’s Vision 2030 with its programs and strategic goals.

According to the Riyadh Chamber index, the Kingdom's GDP ranked 17th among the G20 countries by about $792 billion in 2019.

The Organization for Economic Cooperation and Development expected the Kingdom's GDP growth in 2022 at a rate of 3.9%.

Moreover, the index highlighted that a group of main activities and sectors had contributed to the diversification of the Saudi non-oil economy.

Those sectors include trade, industry, transportation, mining and quarrying, finance and insurance, contractors, and collective, social, and personal services.

The index pointed to a significant increase in the contribution of the private sector to the Saudi GDP at constant prices to reach 43 % in 2021, compared to 41.8 % in 2020.

Regarding the most important economic sectors and their role in diversifying the sources of GDP, the index stated that the activities of crude oil and natural gas achieved 35.3% of contribution to real GDP growth.

The index confirmed that the upward trend in the growth rates of non-oil sectors is a result of the establishment of the objectives of Kingdom’s Vision 2030, and it also indicates the strength of the Saudi economy and the speed of its recovery in order to proceed with achieving aspirations and sustainable growth, especially after the coronavirus pandemic.



German Central Bank Chief: US Tariffs Would Eat Up German Growth in 2025

President of the Bundesbank, Dr Joachim Nagel, speaks during an interview at the G20 finance meeting in Durban, South Africa, on July 17, 2025. REUTERS/Rogan Ward
President of the Bundesbank, Dr Joachim Nagel, speaks during an interview at the G20 finance meeting in Durban, South Africa, on July 17, 2025. REUTERS/Rogan Ward
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German Central Bank Chief: US Tariffs Would Eat Up German Growth in 2025

President of the Bundesbank, Dr Joachim Nagel, speaks during an interview at the G20 finance meeting in Durban, South Africa, on July 17, 2025. REUTERS/Rogan Ward
President of the Bundesbank, Dr Joachim Nagel, speaks during an interview at the G20 finance meeting in Durban, South Africa, on July 17, 2025. REUTERS/Rogan Ward

The Bundebank expects growth of 0.7% in Germany in 2026 but this could be eaten up if US tariffs of 30% threatened by President Donald Trump were implemented, the central bank's President Joachim Nagel told Reuters in an interview.

“If tariffs materialize in August, a recession in Germany in 2025 cannot be ruled out,” Nagel said in Durban, South Africa, where the meeting of G20 finance chiefs is taking place on Thursday and Friday.

The 30% tariff on European goods threatened by Trump would, if implemented, be a game-changer for Europe, wiping out whole chunks of transatlantic commerce and forcing a rethink of its export-led economic model.

“The outlook for the German economy has just improved, especially due to the fiscal program that has been announced and is now being implemented by the German federal government, which also sets the right accents: investments in infrastructure, in future technologies,” Nagel said. “But this uncertainty could significantly weaken a positive outlook.”

Also, German Finance Minister Klingbeil told Reuters on Thursday that the European Union should find solutions to its finances without using common borrowing.

Klingbeil said the EU had joint debt in the last few years, but that was in a crisis situation during the COVID pandemic, he said in an interview on the sidelines of a G20 meeting in Durban, South Africa.

“Overall, we need to resolve the finances of the EU differently than through a policy of joint debt,” he said.

“Fortunately, we are not in such a crisis right now,” he added.