Saudi Arabia to become world’s fastest-growing economy in 2022 as GDP likely to grow 7.5%: Report

Saudi Arabia is poised to become the fastest-growing economy in 2022, outpacing Asian giants like China, India, and other struggling economies in Western Europe and North America, according to a report. 

The report published in Economist Intelligence suggested that the gross domestic product of the Kingdom is expected to reach 7.5 percent this year, its fastest growth rate since 2011. 

The Kingdom’s economic growth is primarily driven by higher energy prices, rising oil and gas production, large-scale investment in the energy and non-energy sectors, and the successful rollout of an extensive COVID‑19 vaccination program, the report said. 

It further said that the Saudi real GDP growth will be close to a solid 5 percent in 2023 before slipping back to a reasonably strong growth of about 3 percent between 2024 and 2026.

Saudi Arabia’s current account balance in 2022 is likely to witness a surplus of about $163 billion, up from $44 billion in 2021. 

As the Saudi Central Bank continues to tighten monetary policy in line with the US Federal Reserve, consumer price inflation is expected to average about 2.5 percent in 2022, and it is expected to lower further in 2023, the report added. 

It pointed out that the regulatory reforms currently underway in the Kingdom are improving the business environment and are attracting foreign investments. 

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