World Bank Raises Economic Growth Forecast for Saudi Arabia

The World Bank has raised its economic growth forecast for the Kingdom of Saudi Arabia for 2022 from 3.3% to 4.9%, due to an increase in the country's oil production, accompanied by a recovery in non-oil sectors supported by the acceleration of vaccination campaigns in the country. The bank stated that the Kingdom will record an economic growth of 2.3% in 2023 compared to previous forecasts of 3.2%. It added that the oil sector is likely to experience a strong recovery, which will positively reflect on exports. The bank also expects non-oil businesses to benefit from the large number of vaccinated individuals against the coronavirus, as well as accelerated investments. In December, Saudi Arabia approved the general budget for the 2022 fiscal year with total revenues estimated at 1,045 billion riyals and expenditures of 955 billion riyals. A report entitled "Global Economic Outlook," released on Saturday and representing the bank's latest edition, indicated that global growth rates are expected to drop significantly from 5.5% in 2021 to 4.1% in 2022 and 3.2% in 2023, due to the decline in pent-up demand and the termination of support measures in public finance and monetary policy worldwide.