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

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 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 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.