Saudi GDP growth rate will be 7.8 % in 2022 and 9.0 % in 2023;

The Saudi economy will grow by 7.8% in 2022, while G20 economies are expected to grow by only 2.9%, said OECD in its recent economic outlook.

OECD also upgraded the Saudi GDP growth in 2023 to 9.0%, three times the G20 average growth, while the Kingdom’s inflation rate will remain below the G20 average of 6.3%;

Saudi Arabia, Argentina, and Turkey are few rare cases showing positive GDP growth since the Ukraine war started.

China, India (along with rest of the G20 economies) — are anticipated to see a fall in real GDP rates of 4.4 and 6.9 % in 2022, respectively.

India’s economy is predicted to recover by 2023; however, the same cannot be said for China and the rest of the G20 economies;

Inflation on the rise but not in Saudi Arabia

While world economies are suffering from rising global food and commodity prices, Saudi Arabia will continue to enjoy lower levels of inflation, according to OECD;

As regards inflation, the countries neighboring Russia and Ukraine have been hit the hardest — Lithuania, Estonia, and Latvia have endured inflation rates of 14, 12, and 10 %, respectively.

Likewise (except for Japan), all OECD countries are recording higher levels of inflation relative to the previous year.

Within the G20 economies, Saudi Arabia is expected to be “outperforming” its peers as the only country showing a decrease in inflation rate year-on-year, from 3.1 % in 2021 to 2.2 % in 2022.

Although the Kingdom’s inflation rate is expected to increase to 2.7 % in 2023 (0.5 percentage point increase from 2022) it will achieve lowest inflation levels among the G20 economies and the third lowest worldwide, following Japan and Switzerland.

As Saudi Arabia has lower dependency on wheat exports from Ukraine and Russia than other countries and a robust crude oil production, the Saudi economy will be in a good position next year as well.

Low-income Arab economies ie: Sudan, Lebanon, Egypt (which rely on 90 % of their wheat exports from Russia and Ukraine) will experience negative GDP growth because of supply disruptions.

Kind regards,

Rohail Khan, Senior Banker / Strategic CFO / Independent Financial Adviser / PE and VC Specialist;

Riyadh - Jeddah - AlKhobar - Dubai

Whatsapp: +966562978219 E-mail: [email protected] LinkedIn:http://www.linkedin.com/in/rohail ______ #SaudiVision2030 #SaudiEconomy #SaudiGDP #OECD #G20 #RohailKhan