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Capital Economics’ forecast a further evidence that the Saudi economic recovery has taken off in 2021
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Saudi economy is expected to grow to 4.8 percent from 2.2 percent in 2021, and to 6.3 percent from 4.1 percent in 2022
Saudi economy is expected to grow 4.8 percent in 2021 from 2.2 percent last year, according to the estimates of Capital Economics.
The eonomic growth may surge to 6.3 percent in 2022, the report said.
The new forecasts are further evidence that the Saudi economic recovery has taken off in 2021.
At the start of the year, the Kingdom’s Ministry of Finance said that it expected 3.2 percent growth this year — reversing the pandemic-driven downturn of 2020. The International Monetary Fund forecast just 2.1 percent growth two months ago.
The Saudi economy is expected to maintain growth in the second half of the year. The expansion is also backed by higher oil output amid an OPEC+ agreement.
The Kingdom’s finance, insurance, real estate, and business sectors are likely to expand by 9 percent annually and their relative share to overall economic activity will grow by 12.7 percent.
Meanwhile, the services sector is also likely to grow about 10 percent annually on average, implying that its relative gross domestic product (GDP) share will climb to almost 40 percent in 2030.