Saudi economic growth projected at 8.3 percent in 2022: World Bank

Saudi economic growth projected at 8.3 percent in 2022: World Bank

RIYADH: Saudi Arabia’s economic growth is expected to accelerate to 8.3 percent in 2022, according to a forecast by the World Bank. In its report, the organization noted the economic growth of the Kingdom will be moderated to 3.7 and 2.3 percent in 2023 and 2024, respectively. According to the World Bank, the oil sector will be the key driver of this economic growth with the output estimated to grow by 15.5 percent in 2022, while the non-oil sector is also expected to continue its growth trajectory estimated at 4.3 percent this year. “The Saudi Arabian economy is on an accelerated growth path in 2022; driven by higher oil and non-oil activities as the oil sector strengthens and pandemic pressures fade,” wrote the World Bank in the report. The report further noted that headline inflation is expected to stay subdued during 2022 and hover around 2.5 percent as a result of a stronger US dollar, subsidies and price controls, and stable rents. It added that inflation is expected to average 2.3 percent in the medium term. The World Bank projected that the budget balance will register a surplus of 6.8 percent of gross domestic product in 2022, the first surplus