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IMF: Overall Saudi Arabian GDP Projected to Grow 7.6%
Thursday, 23 June, 2022 - 08:45
IMF confirms that Saudi Arabia mitigated the economic risks resulting from the Russian-Ukrainian war (Asharq Al-Awsat)
Riyadh - Asharq Al-Awsat
The International Monetary Fund (IMF) has highlighted solid indicators for the Saudi economy, expecting a 7.6 percent overall GDP growth in 2022.
Non-oil growth will increase to 4.2 percent in 2022, with the current account surplus will increase to 17.4 percent of GDP in 2022, said the Fund experts.
An IMF mission conducted discussions for the 2022 Article IV Consultation from May 23-June 6 and issued a concluding statement describing their preliminary findings.
The experts emphasized the strength of the Saudi economy and its financial position, explaining that the country's economic prospects have a positive outlook in the short and medium term.
"The near and medium-term outlook for Saudi Arabia is positive as growth is picking up, inflation will remain contained, and the external position will strengthen further."
The Fund indicated that the Kingdom managed the COVID-19 pandemic well and is well-positioned to weather the risks posed by the war in Ukraine and the monetary policy tightening cycle in advanced economies.
"Economic activity is picking up strongly, supported by a higher oil price and the reforms unleashed under Vision 2030," read the statement.
Saudi authorities' commitment to fiscal discipline should help further strengthen fiscal and external sustainability and avoid procyclicality while implementing the ambitious structural reform agenda will help ensure a durable, inclusive, and green recovery.
"Saudi Arabia is recovering strongly following a deep pandemic-induced recession."
The report also explained that the overall growth was robust at 3.2 percent in 2021, driven by recovering non-oil manufacturing, retail, e-commerce, and the trade sector.
The Fund pointed out that with increased labor force participation of nationals offsetting expatriates' departures, the unemployment rate has fallen further to 11 percent, a 1.6 percent drop from 2020, mainly owing to higher employment for Saudi nationals, particularly women, in the private sector.
The statement said that financial stability risks are well contained, and the banking system is profitable, liquid, and well-capitalized.
The staff's preliminary analysis found that the impact on credit growth and non-oil GDP is negligible and positive for the banking sector profitability when oil prices and liquidity are high.
They touched on the Kingdom's efforts concerning climate policies, stressing that the government is working to intensify investments in blue and green hydrogen production and is undertaking research and development focusing on the circular carbon economy.
They confirmed the strength of the Kingdom's economy and the power of its financial position, reflected in the great effort made by the government to promote its economic reforms in light of Vision 2030.
Saudi Arabia works on various projects in different sectors, including infrastructure, logistics, entertainment, tourism, and mining.
"The mission welcomes the Kingdom's commitment to fiscal sustainability and efforts to avoid procyclicality by setting a spending ceiling that would be delinked from oil price fluctuations."
IMF: Overall Saudi GDP Projected to Grow 7.6%
The International Monetary Fund (IMF) has highlighted solid indicators for the Saudi economy, expecting a 7.6 percent overall GDP growth in 2022. Non-oil growth will increase to 4.2 percent in 2022, with the current account surplus will increase to 17.4 percent of GDP in 2022, said the Fund...
english.aawsat.com
Saudi economy sees fastest growth in decade on higher oil output
The higher oil production by Saudi Arabia and other OPEC+ states was to offset Russian output losses.7 Jun 2022
Saudi Arabia’s gross domestic product grew 9.9 percent in the first quarter, the fastest in a decade and more than a flash estimate last month of 9.6 percent, official data shows.
It was the fastest expansion since the third quarter of 2011 with the increase in oil production a key factor, said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
“This growth is due to the high increase in oil activities by 20.3 percent,” the General Authority for Statistics said.
GDP growth was 2.6 percent higher than in the fourth quarter on a seasonally adjusted basis, while oil activity was up 2.9 percent on a quarterly basis, data released on Tuesday showed.
Crude petroleum and natural gas activities were the highest contributor to GDP at 32.4 percent, the statistics authority said.
Non-oil activity rose 3.7 percent, or 0.9 percent from the previous quarter. Government activity increased by 2.4 percent year on year, but declined 0.9 percent from the fourth quarter.
“All economic activities recorded positive annual growth rates in the first quarter of 2022,” the General Authority for Statistics said.
Wholesale and retail trade, restaurants and hotels activities grew by 6.3 percent from a year earlier, while exports grew by 22.1 percent, the data showed.
GDP per capita of 26,961 riyals ($7,187) in the first quarter of 2022 was up 33.8 percent from the corresponding 2021 quarter.
“The underlying data still points to a healthy pace of expansion in the non-oil sector,” Malik said adding, “Saudi is in a very strong position, given the limited global oil capacity and the high oil prices.”
Saudi Arabia and other OPEC+ states agreed to bring forward oil production rises to offset Russian output losses as a result of Western sanctions for Moscow’s invasion of Ukraine, which it calls a “special military operation”.
In April, the International Monetary Fund upgraded the kingdom’s economic growth outlook to 7.6 percent in 2022, citing higher oil output and prices, from 3.2 percent in 2021.
Saudi economy sees fastest growth in decade on higher oil output
The higher oil production by Saudi Arabia and other OPEC+ states was to offset Russian output losses.
Saudi Aramco eclipses Apple to once again become the world's most valuable company
By Michelle Toh, CNN BusinessUpdated 1638 GMT (0038 HKT) May 12, 2022
Hong Kong (CNN Business)Saudi Aramco has overtaken Apple as the world's most valuable company, underscoring the recent surge in oil prices that have boosted the energy giant this year.
Aramco is now worth about $2.43 trillion, compared with Apple's $2.37 trillion, according to data from Refinitiv.
Saudi Aramco eclipses Apple to once again become the world's most valuable company
Saudi Aramco has overtaken Apple as the world's most valuable company, underscoring the recent surge in oil prices that have boosted the energy giant this year.
edition.cnn.com
I read that Saudi Arabia has had a 50 billion USD profit each month this year. That is 300 billion USD this year so far.
@The SC I hope that the country will use a lot of money on continuing focusing on education, R&D, science, technology and the military sector as well as helping old allies (Pakistan).
