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.



Gold Holds in Narrow Range as Spotlight Shifts to US Jobs Data

FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013.  REUTERS/Shannon Stapleton/File Photo
FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. REUTERS/Shannon Stapleton/File Photo
TT
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Gold Holds in Narrow Range as Spotlight Shifts to US Jobs Data

FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013.  REUTERS/Shannon Stapleton/File Photo
FILE PHOTO: 24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York June 5, 2013. REUTERS/Shannon Stapleton/File Photo

Gold prices were stuck in range-bound trade on Thursday as investors awaited US non-farm payrolls data that could influence the Federal Reserve's timeline for interest rate cuts.

Spot gold edged down by 0.1% to $3,352.59 an ounce by 0801 GMT. US gold futures rose 0.1% to $3,363.10.

"Gold is looking for new triggers," said WisdomTree commodities strategist Nitesh Shah.

"We had slightly weak ADP data that could potentially point to a little bit of weakness in underlying labor markets, which has been a little bit of a support for gold, but the non-farm payrolls could be a trigger point later."

Data released by ADP showed US private payrolls dropped by 33,000 jobs in June, marking the first decline in more than two years.

The non-farm payrolls report due at 1230 GMT on Thursday is expected to show an addition of 110,000 jobs in June, down from 139,000 in May, according to a Reuters poll.

US equities climbed to record highs after President Donald Trump announced that the US has struck a trade deal with Vietnam, including a 20% tariff on exports to the United States. He has also expressed optimism about a deal with India.

"More trade deals at lower tariffs could build some confidence that inflation will remain benign, thus allowing the Fed to ease monetary policy," ANZ analysts said in a note.

Non-yielding gold tends to perform well when interest rates are low and during times of political and financial uncertainty.

In other precious metals, spot silver rose 0.1% to $36.93 an ounce and platinum was steady at $1,417.85, hovering near a more than 10-year high hit last week, while palladium was up 0.1% at $1,155.97.