Capital Economics expects Saudi economy to grow by 10% in 2022
- Date: 26-Apr-2022
- Source: Argaam
- Sector:Economy
- Country:Saudi Arabia
Capital Economics expects Saudi economy to grow by 10% in 2022
The Saudi economy is expected to grow by 10% in 2022 and 5.3% in 2023, which are much greater than expectations, Capital Economics said in a recent report.
The report attributed the Saudi economy growth in 2022 to higher oil production and prices more than expected.
On the back of Russia-Ukraine war, the Saudi economy will benefit from the global oil market turmoil, as Russian oil loss will push Saudi Arabia to enhance its production more quickly than specified under the OPEC + agreement.
It added that higher oil prices will boost the Kingdom's balance sheet in addition to register current account surpluses in 2022.
This will help the government to ease fiscal policy, as well as maximize the Public Investment Fund’s (PIF) investments, which will support non-oil recovery.
Capital Economics stated that the increase in the number of pilgrims for the current year will support the Saudi non-oil economy, indicating that Hajj and other religious visits are among the main contributors to tourism spending in Saudi Arabia.
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