Saudi Arabia’s 2022 GDP grows 8.7 per cent, boosted by higher oil prices

Saudi Arabia’s 2022 GDP grows 8.7 per cent, boosted by higher oil prices

Saudi Arabia’s gross domestic product (GDP) expanded by 8.7 per cent in 2022, the highest among G20 countries, as the Gulf state recorded positive growth across all economic activities leading to its first budget surplus in almost a decade. The kingdom’s statistics authority General Authority for Statistics (GASTAT) attributed GDP growth to a 32.7 per cent growth in crude oil and natural gas activities, a 14.2 per cent increase in government services activities, an 8.6 per cent growth in manufacturing activities except oil refining and restaurants and hotels activity which grew by 8.2 per cent in 2022. Saudi Arabia’s GDP, crossed the $1tn mark for the first time in 2022, beating its own estimates as higher oil prices boosted government revenues. Global benchmark Brent mostly traded above the $90 mark in 2022 and is expected to remain above $60 this year despite a looming recession. The Gulf state recorded a fiscal surplus in the first three quarters of 2022 but registered a deficit of SAR45.7bn in the last quarter of the year after the authorities slashed oil production by 500,000 barrels per day in November in line with the OPEC+ agreement. The International Monetary Fund (IMF) said in August 2022