The World Bank expects Saudi Arabia's economy to grow by 2.4% this year and 3.3% next year. In its Global Economic Outlook report, the Bank noted that this reflects positive developments in addressing the pandemic, rising oil prices, diminished oil production cuts, and the initiation of a new government investment program in the Kingdom. The Bank explained that in oil-exporting countries, rising oil prices will support growth and increase government revenues.
The World Bank projected that the average oil price will reach $62 per barrel in 2021 and 2022. It also anticipated economic activity growth in the Middle East and North Africa by 2.4% this year and 3.5% next year. The bank forecasts global economic growth at 5.6% in 2021, marking the fastest growth rate after an economic recession in 80 years, primarily attributed to the strong recovery of a few major economies. However, many emerging market countries and developing economies are still suffering from the COVID-19 pandemic and its impacts, as stated by the World Bank in the June 2021 issue of its Global Economic Outlook report.
Despite this recovery, global output is expected to remain nearly 2% below pre-pandemic projections by the end of this year. In about two-thirds of emerging markets and developing economies, the losses in average per capita income will not recover by 2022. The International Monetary Fund had projected real GDP growth in Saudi Arabia of 2.1% this year and 4.8% next year, compared to an earlier estimate by the Fund of 4%.
