Saudi Arabia set to be world’s fastest-growing major economy

[Corruptistan]

Saudi Arabia set to be world’s fastest-growing major economy​

Tue, 30th Aug 2022

• Saudi Arabia will be the world’s fastest-growing major economy in 2022, outperforming the dynamic Asian giants of China, India, Indonesia and South Korea, as well as the struggling G7 and other major emerging economies.
• The kingdom has recovered quickly from a pandemic-induced recession in 2020 and is reaping the rewards of high global energy prices and increased energy production. Economic fundamentals are moving in the right direction with the budget balance returning to positive territory and public debt shrinking in 2022, while consumer price inflation is contained.
• Beyond 2022, economic growth is expected to remain supported by pro-business reforms, which will help to facilitate higher levels of domestic and foreign private investment into the energy and non-energy sectors.

Saudi Arabia will be the fastest growing of the world’s largest economies in 2022. The kingdom will outpace the dynamic Asian giants of China, India, Indonesia, South Korea and Taiwan, grow much faster than the struggling major economies in western Europe and North America, and leave other large emerging economies in its wake. Real GDP growth is expected to reach 7.5% in 2022, which would be the kingdom’s fastest rate of growth since 2011 and place it at the top of the economic growth chart for the world’s 20 largest economies (measured in US dollars at purchasing power parity). Saudi Arabian real GDP growth will be close to a solid 5% in 2023 before slipping back to reasonably strong growth of about 3% in 2024‑26.

Fundamentals moving in the right direction

Economic performance is being boosted by high energy prices and 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 programme. The fiscal balance will return to positive territory in 2022 supported by an energy sector windfall and buoyant non-energy business activity, while the public debt stock—which has been on a rising trend for much of the past decade—will shrink in absolute terms and relative to GDP. Unsurprisingly, the current-account balance will post an enormous surplus of about US$163bn (up from US$44bn in 2021), which will contribute to the rebuilding of ample reserve buffers, with international reserves of US$475bn almost back to pre-pandemic levels.

Inflation under wraps

Expensive imported commodities will add to price pressures, but consumer price inflation will remain contained by price caps and subsidies, and as the Saudi Central Bank tightens monetary policy in line with the Federal Reserve (the US central bank) to help to protect the exchange-rate peg to the US dollar. Consumer price inflation is expected to average about 2.5% in 2022 (and even less in 2023), which together with China and Japan will be the lowest annual average rate recorded among the world’s 20 largest economies. Moreover, any increase in domestic interest rates will have a limited impact on the overall performance of the Saudi economy given a prolonged period of high oil and gas prices and strong liquidity in the financial and business sector facilitated by the recycling of energy revenue and inflows of foreign investment.

Positive medium-term economic prospects

Saudi Arabia has implemented a wide range of reforms to help to improve the business environment, attract foreign investment and boost private-sector participation in driving the economy and supporting the labour market. Pro-business reforms have made it easier to start a business and easier for foreign companies to invest in the economy, both of which are fundamental to the kingdom’s long-term development plans under the Vision 2030 strategy. Business infrastructure and facilities will continue to improve because of large-scale public and private investment that bodes well for a wide range of sectors, including tourism and hospitality, transport and logistics, energy and derivatives, industrial production and manufacturing, and a range of consumer and business services. Saudi Arabia’s economic outlook appears promising, especially if the reform process can remain on track and finance continues to flow into the kingdom’s strategic projects and growth sectors.

The analysis and forecasts featured in this piece can be found in EIU Viewpoint, our new country analysis solution. EIU Viewpoint provides unmatched global insights covering the political and economic outlook for nearly 200 countries, helping organisations identify prospective opportunities and potential risks.

Saudi Arabia: fastest-growing major economy

Saudi Arabia will be the fastest growing of the world's largest economies in 2022, outpacing China, India, Indonesia, South Korea and Taiwan. Learn more.

www.eiu.com

Saudi Arabia has a very bright future ahead of it.

 

[Corruptistan]

What is more important is the rapid growth of the non-oil sector and the fact that less than 50% of the state budget LAST year (prior to the energy boom in other words) derived from oil/gas income.

When KSA's ongoing transformation towards renewables (solar, wind, dams, thermal etc.), nuclear energy, green hydrogen etc. is completed, oil and gas (which currently is only used for local consumption) can be solely viewed as additional income sources rather than key exports.

In the meantime trillions of USD of wealth have been accumulated and hopefully that wealth will continue to be invested cleverly within KSA and outside of it while the ongoing economic, social etc. reforms will continue to attract and improve KSA's international rankings which are already impressive as it is.

KSA has been given additional time to continue this ongoing economic transformation by record high energy prices, at least record high in the past 10 years or so. This opportunity should not be squandered but used to KSA's benefit.

Time will tell but the current situation could hardly be better to continue the ongoing developments in a successful manner.

 

[PAKISTANFOREVER]

Saudi Arabia set to be world’s fastest-growing major economy​

Tue, 30th Aug 2022

• Saudi Arabia will be the world’s fastest-growing major economy in 2022, outperforming the dynamic Asian giants of China, India, Indonesia and South Korea, as well as the struggling G7 and other major emerging economies.
• The kingdom has recovered quickly from a pandemic-induced recession in 2020 and is reaping the rewards of high global energy prices and increased energy production. Economic fundamentals are moving in the right direction with the budget balance returning to positive territory and public debt shrinking in 2022, while consumer price inflation is contained.
• Beyond 2022, economic growth is expected to remain supported by pro-business reforms, which will help to facilitate higher levels of domestic and foreign private investment into the energy and non-energy sectors.

Saudi Arabia will be the fastest growing of the world’s largest economies in 2022. The kingdom will outpace the dynamic Asian giants of China, India, Indonesia, South Korea and Taiwan, grow much faster than the struggling major economies in western Europe and North America, and leave other large emerging economies in its wake. Real GDP growth is expected to reach 7.5% in 2022, which would be the kingdom’s fastest rate of growth since 2011 and place it at the top of the economic growth chart for the world’s 20 largest economies (measured in US dollars at purchasing power parity). Saudi Arabian real GDP growth will be close to a solid 5% in 2023 before slipping back to reasonably strong growth of about 3% in 2024‑26.

Fundamentals moving in the right direction

Economic performance is being boosted by high energy prices and 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 programme. The fiscal balance will return to positive territory in 2022 supported by an energy sector windfall and buoyant non-energy business activity, while the public debt stock—which has been on a rising trend for much of the past decade—will shrink in absolute terms and relative to GDP. Unsurprisingly, the current-account balance will post an enormous surplus of about US$163bn (up from US$44bn in 2021), which will contribute to the rebuilding of ample reserve buffers, with international reserves of US$475bn almost back to pre-pandemic levels.

Inflation under wraps

Expensive imported commodities will add to price pressures, but consumer price inflation will remain contained by price caps and subsidies, and as the Saudi Central Bank tightens monetary policy in line with the Federal Reserve (the US central bank) to help to protect the exchange-rate peg to the US dollar. Consumer price inflation is expected to average about 2.5% in 2022 (and even less in 2023), which together with China and Japan will be the lowest annual average rate recorded among the world’s 20 largest economies. Moreover, any increase in domestic interest rates will have a limited impact on the overall performance of the Saudi economy given a prolonged period of high oil and gas prices and strong liquidity in the financial and business sector facilitated by the recycling of energy revenue and inflows of foreign investment.

Positive medium-term economic prospects

Saudi Arabia has implemented a wide range of reforms to help to improve the business environment, attract foreign investment and boost private-sector participation in driving the economy and supporting the labour market. Pro-business reforms have made it easier to start a business and easier for foreign companies to invest in the economy, both of which are fundamental to the kingdom’s long-term development plans under the Vision 2030 strategy. Business infrastructure and facilities will continue to improve because of large-scale public and private investment that bodes well for a wide range of sectors, including tourism and hospitality, transport and logistics, energy and derivatives, industrial production and manufacturing, and a range of consumer and business services. Saudi Arabia’s economic outlook appears promising, especially if the reform process can remain on track and finance continues to flow into the kingdom’s strategic projects and growth sectors.

The analysis and forecasts featured in this piece can be found in EIU Viewpoint, our new country analysis solution. EIU Viewpoint provides unmatched global insights covering the political and economic outlook for nearly 200 countries, helping organisations identify prospective opportunities and potential risks.

Saudi Arabia: fastest-growing major economy

Saudi Arabia will be the fastest growing of the world's largest economies in 2022, outpacing China, India, Indonesia, South Korea and Taiwan. Learn more.

www.eiu.com

Saudi Arabia has a very bright future ahead of it.

The GDP per capita of Pakistan is $1562 and the GDP per capita of Saudi Arabia is $28,759. The Saudi economy is over 1740% better than that if Pakistan. Let those figures just sink in..........

 

[Corruptistan]

The GDP per capita of Pakistan is $1562 and the GDP per capita of Saudi Arabia is $28,759. The Saudi economy is over 1740% better than that if Pakistan. Let those figures just sink in..........

I would not take the GDP per capita (nominal) of either KSA or Pakistan too seriously. Both have FAR higher GDP per capita (nominal) than what is stated. In the case of KSA almost 9 million expats GDP per capita (nominal) is included here.

Not only that, the "black economy" of Pakistan makes such official figures a joke. Pakistan's economy is almost twice as big as the "official" figures. Not only that hardly anyone pays taxes in Pakistan. Tax collection is a joke for the most part.

GDP per capita (PPP) is a better indicator to look at.

List of countries by GDP (PPP) per capita - Wikipedia

en.wikipedia.org

In this regard KSA is doing better than UK (more realistic) and Pakistan is doing far better too (more realistic too)

There is no way that some 50 odd African Sub-Saharan countries are richer per capita than Pakistan!

 

[PAKISTANFOREVER]

I would not take the GDP per capita (nominal) of either KSA or Pakistan too seriously. Both have FAR higher GDP per capita (nominal) than what is stated. In the case of KSA almost 9 million expats GDP per capita (nominal) is included here.

Not only that, the "black economy" of Pakistan makes such official figures a joke. Pakistan's economy is almost twice as big as the "official" figures. Not only that hardly anyone pays taxes in Pakistan. Tax collection is a joke for the most part.

GDP per capita (PPP) is a better indicator to look at.

List of countries by GDP (PPP) per capita - Wikipedia

en.wikipedia.org

In this regard KSA is doing better than UK (more realistic) and Pakistan is doing far better too (more realistic too)

There is no way that some 50 odd African Sub-Saharan countries are richer per capita than Pakistan!

I hope you are right.

 

[Indos]

Yup, it is indeed Saudi Arabia, and not India who will have the fastest growth among major economy (G20) this year.

I still believe India economic growth for this year will be about 5.5 %. My projection is not far from this projection as well.

For Indonesia, this projection is some what less than what I expect. I think Indonesia economic growth will be around 5.5 % for 2022.

Indonesia Q1 is 5 %, Q2 is 5.44 %, Q3 will likely be around 6-7.5 % due to low base growth in Q3 2021 due to Delta variant semi lockdown, and Q4 I expect will likely be around 5.4-5.6 %.

 

[Battlion25]

Due to oil rise

 

[Corruptistan]

Due to oil rise

Not only. KSA’s non-oil economy is booming and recording the highest growth in its history. KSA has undergone fundamental reforms on all fronts in the past few years under the wise leadership of MbS. This article alludes to that already.

 

[Acetic Acid]

Yup, it is indeed Saudi Arabia, and not India who will have the fastest growth among major economy (G20) this year.

I still believe India economic growth for this year will be about 5.5 %. My projection is not far from this projection as well.

For Indonesia, this projection is some what less than what I expect. I think Indonesia economic growth will be around 5.5 % for 2022.

Indonesia Q1 is 5 %, Q2 is 5.44 %, Q3 will likely be around 6-7.5 % due to low base growth in Q3 2021 due to Delta variant semi lockdown, and Q4 I expect will likely be around 5.4-5.6 %.

Pakistan had the GDP growth of 6.2 % before the regime change

 

[JohnyD]

possible considering the oil prices but their economy is mainly driven by only one sector which is a big risk and difficult to sustain the momentum as world is actively investing in alternate source of energy..

 

[Corruptistan]

possible considering the oil prices but their economy is mainly driven by only one sector which is a big risk and difficult to sustain the momentum as world is actively investing in alternate source of energy..

Was. No longer the case. Did you even read the article?

Saudi Arabia's 2021 budget records highest non-oil revenues ever​

December 13, 2021

RIYADH - The kingdom of Saudi Arabia in 2021 has recorded its highest ever non-oil revenues.

While the business climate index for the non-oil economy has grew by more than 13% in October.

Finance Minister Mohammed Al-Jadaan confirmed that the Kingdom's non-oil output will grow by 4.8% in 2022 and at a rate of 5% in 2023 and 2024.

The Crown Prince Muhammad Bin Salman said Saudi Arabia has achieved high rates of real GDP growth for the non-oil sector, which amounted to about 5.4% until the end of the third quarter of 2021.

The Kingdom achieved a record level of SR372 billion on its non-oil revenues in the budget of 2021, which is equivalent to 40% of the total state revenues, amounting SR930 billion.

This statement came after Saudi Arabia’s Council of Ministers approved the general budget for the fiscal year of 2022 on Sunday, with an estimated total revenues of SR1045 billion and spending of SR955 billion.

Saudi Arabia's 2021 budget records highest non-oil revenues ever

The kingdom of Saudi Arabia in 2021 has recorded its highest ever non-oil revenues.

saudigazette.com.sa

This was last year before the oil boom, inflation, Ukraine war etc.

Get on with the time.

 

[JohnyD]

Was. No longer the case. Did you even read the article?

Saudi Arabia's 2021 budget records highest non-oil revenues ever​

December 13, 2021

RIYADH - The kingdom of Saudi Arabia in 2021 has recorded its highest ever non-oil revenues.

While the business climate index for the non-oil economy has grew by more than 13% in October.

Finance Minister Mohammed Al-Jadaan confirmed that the Kingdom's non-oil output will grow by 4.8% in 2022 and at a rate of 5% in 2023 and 2024.

The Crown Prince Muhammad Bin Salman said Saudi Arabia has achieved high rates of real GDP growth for the non-oil sector, which amounted to about 5.4% until the end of the third quarter of 2021.

The Kingdom achieved a record level of SR372 billion on its non-oil revenues in the budget of 2021, which is equivalent to 40% of the total state revenues, amounting SR930 billion.

This statement came after Saudi Arabia’s Council of Ministers approved the general budget for the fiscal year of 2022 on Sunday, with an estimated total revenues of SR1045 billion and spending of SR955 billion.

Saudi Arabia's 2021 budget records highest non-oil revenues ever

The kingdom of Saudi Arabia in 2021 has recorded its highest ever non-oil revenues.

saudigazette.com.sa

This was last year before the oil boom, inflation, Ukraine war etc.

Get on with the time.

good sign but not sufficient to drive the economy ...
wiki says,
The petroleum sector accounts for roughly 87% of Saudi budget revenues, 90% of export earnings, and 42% of GDP

nothing to put your country on negative side but just my thoughs that the growth is mainly driven by high oil prices and its a commodity

 

[Indos]

Pakistan had the GDP growth of 6.2 % before the regime change

6.2 % in 2021 ? That is an achievement

 

[SaadH]

Not only. KSA’s non-oil economy is booming and recording the highest growth in its history. KSA has undergone fundamental reforms on all fronts in the past few years under the wise leadership of MbS. This article alludes to that already.

This idiotic myth amongst Pakistanis and other haters has been perpetuating for some time. Saudi's non-oil exports have been higher than Pakistan's total export for sometime now.

 

[Corruptistan]

good sign but not sufficient to drive the economy ...
wiki says,
The petroleum sector accounts for roughly 87% of Saudi budget revenues, 90% of export earnings, and 42% of GDP

nothing to put your country on negative side but just my thoughs that the growth is mainly driven by high oil prices and its a commodity

Wikipedia is not a reliable source as everyone can edit it.

I prefer to go by the official sources which in this case is the state budget of KSA from last year and official KSA data.

No doubt that KSA’s economy is reliant on oil to a great extend but this influence is decreasing each month and as I wrote initially the KSA non-oil economy is booming as is KSA as a whole in terms of economic growth, reforms, various sectors, industralization, military sector etc.

Barring any large scale regional war, I am fully convinced that KSA will continue to develop at a rapid speed on almost all fronts.

And unlike 99% of the world’s 200 + countries, KSA has assests worth of 50 trillion USD. It is the third most ressource rich country on the planet after Russia and USA. One of the largest sovereign wealth funds on the planet worth ov’er 1 trillion USD.

10 Countries With the Most Natural Resources

Commodities are the raw materials used for products manufactured worldwide. This article lists the top 10 countries with the most value in natural resources.

www.investopedia.com

and have in mind that KSA has a small population of just 36 million. They are absolutely stacked, the people/locals that is for centuries to come.

This idiotic myth amongst Pakistanis and other haters has been perpetuating for some time. Saudi's non-oil exports have been higher than Pakistan's total export for sometime now.

It is the same lot that think that Arab history began with the discovery of oil 80 years ago in Arab lands, seemingly forgetting 1300 years of Islamic history prior to that, that the Arab world is home to the oldest civilizations on the planet (recorded at least), that the same Arabs from modern-day KSA (Arabia) created the largest and most influential empires of any people in the Muslim world and some of the most influential and largest in the entire world history. Much of which is the living heritage of the entire Muslim world.

In fact the Muslim world was the most prosperous and powerful when it was ruled by the Arabs. Food for thought for the “pious” anti-Arab hypocrites out there.

It is as if those people were deliberately trying to reduce Arabs to the past 80 years alone. It is just as if the same people had a hatred/dislike for them. It is so obvious to spot. So funny to witness. It never gets old.