Saudi Arabia sees fastest economic growth in over decade during Q2-22 – Al Rajhi Capital

Saudi Arabia sees fastest economic growth in over decade during Q2-22 – Al Rajhi Capital

Riyadh - Mubasher: Saudi Arabia recorded a strong economic growth during the second quarter (Q2) of 2022 amid a surge in energy prices, marking the fastest pace in more than 10 years, according to a recent report by Al Rajhi Capital.

The research entity noted that the International Monetary Fund (IMF) earlier projected that the Kingdom will be one of the world's fastest-growing economies with a growth rate of 7.6% in 2022.

Moreover, S&P Global Ratings affirmed Saudi Arabia’s rating at ’A-/A-2’ with a positive outlook, citing higher oil revenues and production, as well as the government’s effective reform programme.

Gross Domestic Product (GDP)

The Kingdom’s gross domestic product (GDP) rose by 12.2% year-on-year (YoY) in Q2-22, supported by a 22.9% surge in the oil sector and an 8.2% increase in the non-oil sector.

In addition, the Q2-22 GDP growth rate was higher than the 9.9% YoY rate which was registered in Q1-22.

Money Supply

The Saudi broader money supply (M3) went up by 9% YoY in August 2022 to SAR 2.44 trillion, compared to an 8.10% growth in July this year. The Saudi Central Bank (SAMA) expected that the September M3 might be higher than its rate in August 2022.

Additionally, M1 increased by 5.10% YoY in