LONDON — Following the rapid growth witnessed in recent months, Saudi Arabia’s economy is expected to grow 10% in 2022, according to Capital Economics.

Capital Economics expects that the Saudi economy will grow by 10% due to the growth figures during Q1, which indicated an increase of 9.6% on an annual basis — the best growth reading since 2011.

"Saudi Arabia’s economy grew at its fastest pace in a decade in Q1 and we think this strength will carry on over the rest of this year," Capital Economics said in a statement.

"The combination of rising oil output and the increasing likelihood of looser fiscal policy underpins our above-consensus forecast for the Kingdom’s economy to grow by 10% in 2022," the statement added.

Capital Economics has stated that Saudi Arabia's oil production reached 10.35 million barrels per day in April, which is an increase of more than 27% year on year.

It said this is considered as the fastest pace in production increase since March of 2003.