Saudi Arabia to be world’s fastest-growing economy at 7.5%in 2022: Economist

The Kingdom of Saudi Arabia's flag

Economist Intelligence said, in a report that Saudi Arabia is set to be the world’s fastest-growing major economy in 2022, expecting real GDP growth to reach 7.5% this year. 

This will be the Kingdom’s fastest rate of growth since 2011 and place it at the top of the economic growth chart for the world’s 20 largest economies, it added. 

The report also showed that Saudi Arabia's real GDP growth will be close to a solid 5% in 2023 before slipping back to reasonably strong growth of about 3% in 2024‑26.

It noted that Saudi economic performance is being boosted by high energy prices and rising oil and gas production, large-scale investment in the energy and non-energy sectors.

It expects the Kingdom's public debt to shrink (compared with GDP), with strong reserve buffers.

Economist Intelligence also stated that Saudi Arabia has implemented a wide range of reforms to help to improve the business environment, attract foreign investment and boost private-sector participation in driving the economy and supporting the labor market. It noted that pro-business reforms have made it easier to start a business and easier for foreign companies to invest in the economy, both of which are fundamental to the Kingdom’s long-term development plans under the Vision 2030 strategy.

In addition, business infrastructure and facilities will continue to improve because of large-scale public and private investment that bodes well for a wide range of sectors, including tourism and hospitality, transport and logistics, energy and derivatives, industrial production and manufacturing, and a range of consumer and business services, said the report.

It added that Saudi Arabia’s economic outlook appears promising, especially if the reform process can remain on track and finance continues to flow into the kingdom’s strategic projects and growth sectors.