The Clap
The World Bank has raised its forecast of the Saudi economy growth for next year to 5.9%, instead of its previous estimate of 4.2% in January.
Non-oil sector
In its report released on Monday titled “Conflict and Debt in the Middle East and North Africa,” the bank expected growth of the non-oil private sector in Saudi Arabia.
This is by 4.8% during the current year, thanks to the expansionary policies of public finance.
It is worth mentioning that non-oil activities recorded their “highest contribution” to real GDP, at 50% during 2023.
Thus, the total non-oil economy in the Kingdom reached 1.7 trillion riyals at constant prices, supported by continued growth in investment, consumption, and exports.
So What
The bank predicted that per capita GDP in the Kingdom would grow by 0.5% during the current year.
This is “much better” than the previous year’s contraction, which was 2.8%.
In its report, it also pointed to the government’s containment of inflation, as a result of implementing tight monetary policies and supporting food and energy materials.
Now What
The World Bank has lowered its expectations for the country’s economic growth during the current year to 2.5%, from the 4.1% it previously forecasted in January.
This was attributed to the decline in oil prices last year, and the reduction in production by the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance.
