Saudi Arabia Set to Become World’s Fastest-Growing Major Economy in 2023

The Saudi economy is witnessing rapid growth, according to reports issued by international agencies (Asharq Al-Awsat)
The Saudi economy is witnessing rapid growth, according to reports issued by international agencies (Asharq Al-Awsat)
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Saudi Arabia Set to Become World’s Fastest-Growing Major Economy in 2023

The Saudi economy is witnessing rapid growth, according to reports issued by international agencies (Asharq Al-Awsat)
The Saudi economy is witnessing rapid growth, according to reports issued by international agencies (Asharq Al-Awsat)

Saudi Arabia is set to overtake India as the fastest-growing major economy in 2023 after the latter lost growth due to weak demand at home and abroad.

The Kingdom’s real gross domestic product grew by 8.8 % in the third quarter of 2022 compared to the same period in 2021, driven by an increase in oil activities, according to a report released by the General Authority for Statistics (GASTAT).

According to Bloomberg, Saudi Arabia is expected to outpace India with 7.6% gross domestic product growth in 2023.

This follows a 6.8% expansion forecast by the Reserve Bank of India, made by the end of March 2022.

Last December, the Saudi Cabinet approved the state’s general budget for the fiscal year 2023.

The budget covers total spending at SAR 1.114 trillion ($297 billion) and expects revenues estimated at SAR 1.130 trillion ($301 billion), producing a surplus of 16 billion riyals ($4.2 billion).

According to a report by the GASTAT, oil activities in the third quarter increased 14.2 percent year-on-year, and 4.5 percent quarter-on-quarter.

The report further pointed out that non-oil activities in the Kingdom also grew 6 % year-on-year.

Government activities also rose by 2.5 % in the third quarter compared to the same period a year ago.

GASTAT's report further noted that crude petroleum and natural gas grew by 14.8 % year-on-year, thus contributing 35.2 % to the national GDP.

“The non-oil economic activities outside the government contributed with a share of 50.7 % to GDP, with the manufacturing (excluding petroleum refining) with a share of 7.8 % being the most important sub-category within the non-oil economy,” the report said.

According to GASTAT, Saudi GDP at current prices amounted to SAR 1.036 trillion in the third quarter of 2022.

By generating 35.2% of Saudi GDP, crude oil and natural gas activities achieved the highest contribution among all other economic activities. This was followed by government services at 14.1%.



IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
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IMF Eyes Revised Global Forecast, but Warns Trade Tensions Still Cloud Outlook

A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.
A hazy view of the skyline in Toronto, Ontario, Canada, July 14, 2025. REUTERS/Carlos Osorio.

The International Monetary Fund warned on Friday that risks related to trade tensions continue to cloud the global economic outlook and uncertainty remains high despite some increased trade and improved financial conditions.

IMF First Deputy Managing Director Gita Gopinath said the fund would update its global forecast later in July given "front-loading ahead of tariff increases and some trade diversion," along with improved financial conditions and signs of continued declines in inflation.

In April the IMF slashed its growth forecasts for the United States, China and most countries, citing the impact of US tariffs on imports now at 100-year highs and warning that rising trade tensions would further slow growth.

At the time, it cut its forecast for global growth by 0.5 percentage points to 2.8% for 2025, and by 0.3 percentage points to 3%. Economists expect a slight upward revision when the IMF releases an updated forecast in late July.

According to Reuters, Gopinath told finance officials from the Group of 20 major economies who met this week in South Africa that trade tensions continued to complicate the economic outlook.

"While we will update our global forecast at the end of July, downside risks continue to dominate the outlook and uncertainty remains high," she said, in a text of her remarks.

She urged countries to resolve trade tensions and implement policy changes to address underlying domestic imbalances, including scaling back fiscal outlays and putting debt on a sustainable path.

Gopinath also underscored the need for monetary policy officials to carefully calibrate their decisions to specific circumstances in their countries, and stressed the need to protect central bank independence. This was a key theme in the G20 communique released by finance officials.

Gopinath said capital flows to emerging markets and developing economies remained sluggish, but resilient, in the face of increased policy uncertainty and market volatility. For many borrowers, financing conditions remained tight.

For countries with unsustainable debt, proactive moves were essential, Gopinath said, repeating the IMF's call for timely and efficient debt restructuring mechanisms.

More work was needed on that issue, including allowing middle-income countries to access the G20's Common Framework for Debt Restructuring, she said.