World Bank favorably revises 2022 Saudi growth forecast to 4.9% on oil rebound

RIYADH: Saudi Arabia’s economy is set to grow by 4.9 percent this year due to a strong rebound in the oil sector which will induce stronger exports, the World Bank said in a report.

In its Global Economic Prospects report, the international organization upwardly revised the expansion rate by 1.6 percent compared to its June forecast.

In addition, non-oil activities are also expected to strengthen from higher vaccination rates and rising investments. However, the Bank trimmed its 2023 growth forecast by 0.9 percent to 2.3 percent.

With oil prices expected to average around $74 per barrel, coupled with a strengthening demand, the Gulf Cooperation Council economies are set to grow by 4.7 percent this year and by 3 percent in 2023.

Looking at the MENA region as a whole, the international lender favorably altered the region’s growth expectation 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.

Yet, the World Bank said that uncertainties remain high, especially with a falling fiscal support. As for next year, MENA is set to grow by 3.4 percent.

Other risks that face the region include: resurgence in COVID-19 cases, climate disasters and changes to oil prices.