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

SourceAsharq AL-awsat
SectorFinancial Services
CountrySaudi Arabia

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 set 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 offset 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 more...