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Asharq Al-Awsat
Asharq Al-Awsat
Business
Riyadh - Asharq Al-Awsat

OECD Expects Saudi Arabia to Top G20 Economies for 2 Years

A general view in Riyadh, Saudi Arabia (Reuters)

The real GDP growth projections of the Saudi economy are expected to reach 9.9 percent this year, and six percent in 2023, recording the highest growth rate among the G20 countries, according to a report by the Organization for Economic Cooperation and Development (OECD).

The report "OECD Economic Outlook Interim Report September 2022" explained that Saudi Arabia is predicted to have the highest growth rate among the G20 countries, which include the G-20 economy, emerging market economies, and developing economies.

Despite the main challenges facing the global economy, in light of the persistence of inflation for a more extended period than expected, and the slowdown in GDP growth in 2022 and 2023, the estimates of the OECD report for the Kingdom contradict the bleak and ambiguous outlook that stems from several significant factors.

The report noted that the most notable factors are the Russian-Ukrainian crisis, the rise in energy and food prices, the exacerbation of inflationary pressures, the tightening of monetary policies, and general closure measures resulting from the new outbreaks of COVID-19.

As a result, the OECD report lowered its expectations for the performance of the global economy for the current year and 2023, as its estimates were affected by the slowdown in most economies in the world, but it kept its expectations for the growth of the Saudi economy.

Earlier, the International Monetary Fund (IMF) issued a report about the strong performance of the Kingdom's economy and the strength of its financial position.

The IMF report praised the strength of the Saudi economy and its solid financial position.

It stressed that the Kingdom's economic prospects are positive in the short and medium term, with the continued recovery of economic growth rates and containment of inflation, and the increasing strength of its external financial position.

IMF experts stressed that Saudi Arabia's continued implementation of structural reforms would help ensure a robust, comprehensive, and environmentally friendly recovery, noting that the Kingdom is recovering strongly in the wake of the recession caused by the pandemic.

It noted that the support of liquidity, the support provided by the public finances, the momentum of reforms, the rise in oil prices, and the increase in its production helped the Kingdom recover quickly.

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