World Bank recently announced that Saudi Arabia’s economy is set to grow 4.9 percent in 2022 and it is supported by a strong rebound from the oil sector that will induce stronger exports to the country, according to media reports. The World Bank also mentioned that the Kingdom’s economic growth is projected to be 2.3 percent in 2023.
The governing body, in its Global Economics Prospect Report also mentioned that the international organization revised its expansion rate by 1.6 percent upwards, compared to its June forecast. Additionally, non-oil activities are also expected to strengthen over time, aided by higher vaccination rates and rising investments. But, the World Bank trimmed its 2023 growth forecast by 0.9 percent to 2.3 percent
With oil prices averaging at $74/barrel, and aided by strengthening demand, the Gulf Cooperation Council economies are set to grow by 4.7 percent this year and by 3 percent in 2023. Coming to the Middle East and North Africa (MENA) region, the region’s growth expectation is altered by 0.8 percent to 4.4 percent in 2022, saying that both oil exporters and importers would benefit from a weakening pandemic and a fall in oil production cuts.
Even then, the World Bank mentioned that there are uncertainties that still remain high especially with falling fiscal support. As for next year, MENA is set to grow by 3.4 percent. Other additional risks for the region include factors like the resurgence of Covid-19 cases, climate disasters and changes in oil prices.