Arab News, Monday, Jan 17, 2022 | Jamada Al-Aakhirah 14, 1443
World Bank favorably revises 2022 Saudi growth forecast to 4.9% on oil rebound
Saudi Arabia:
Saudi Arabia’s economy is set to grow by 4.9
percent this year due to a strong rebound in the oil sector which will induce
stronger exports, the World Bank said in a report.
In its Global Economic Prospects report, the
international organization upwardly revised the expansion rate by 1.6 percent
compared to its June forecast.
In addition, non-oil activities are also expected
to strengthen from higher vaccination rates and rising investments. However, the
Bank trimmed its 2023 growth forecast by 0.9 percent to 2.3 percent.
With oil prices expected to average around $74 per
barrel, coupled with a strengthening demand, the Gulf Cooperation Council
economies are set to grow by 4.7 percent this year and by 3 percent in 2023.
Looking at the MENA region as a whole, the
international lender favorably altered the region’s growth expectation by 0.8
percent to 4.4 percent in 2022, saying that both oil exporters and importers
would benefit from a weakening pandemic and a fall in oil production cuts.
Yet, the World Bank said that uncertainties remain
high, especially with a falling fiscal support. As for next year, MENA is set to
grow by 3.4 percent.
Other risks that face the region include:
resurgence in COVID-19 cases, climate disasters and changes to oil prices.