Compared to the growth of only 0.7 percent in the second quarter of this year, Saudi Arabia’s economy is likely to have grown by about 5.7 percent in the third quarter.
The spurt in growth is thanks to a robust hydrocarbon sector output, London-based Capital Economics said in a report and added that the projected growth would raise the GDP nearly 1 percent above the pre-Covid level.
Oil production grew to 9.7 million barrels per day (bpd) in September, the highest level since April 2020.
Capital Economics said that increases in oil production, along with an easing of Covid restrictions and a loosened fiscal policy, will only boost recovery further.
In mid-October, the World Bank revised Saudi Arabia’s 2022 growth forecast from 3.3 percent to 4.9 percent.
Its October’s economic update for the Middle East and North Africa region said the Kingdom’s growth will partly be driven by a significant rebound in the oil sector in 2022 following OPEC+ production cuts that are in place until December 2021.
Saudi economic growth in Q3 5.7 percent likely: Capital Economics
- Capital Economics says increases in oil production, along with a loosened fiscal policy, will only boost recovery further.
- In mid-October, the World Bank revised Saudi Arabia’s 2022 growth forecast from 3.3 percent to 4.9 percent.