Arab News, Saturday, Dec 04, 2021 | Rabi Al-Aakhir 29, 1443
Saudi economy to grow strongly in the fourth quarter, to rise 7.3 percent in 2022: Capital Economics
Saudi Arabia:
Saudi Arabia is set to experience strong economic growth in the fourth quarter
of 2021, thanks to oil production hitting its highest level since April 2020,
according to a report from Capital Economics.
Some 9.76 million barrels per day were produced in
October, broadly in line with pre-virus levels of output, analysts at the
London-based economic consultancy firm said.
Although the whole economy Purchase Manager Index
did edge down to 57.7 points in October, there seems to have been a broad-based
rise in output from all sectors in the third quarter, which is likely to extend
into the fourth quarter.
Growth in local deliveries of cement – a proxy for
construction activity – picked up in October.
October point of sales transactions data were also
very strong, although this appears to have eased a touch in early November.
“Overall, we think that the Saudi economy will
have expanded by 2.5 percent over this year as a whole," the report said.
Growth is expected to accelerate to 7.3 percent in
2022 as oil production is set to increase under an agreement reached by the The
Organization of the Petroleum Exporting Countries and its allies, together known
as OPEC+.
This growth is much stronger than the consensus
currently anticipates, Capital Economics analysts noted in the report.