São Paulo – Saudi Arabia’s economy is expected to grow 3% this year backed by a robust non-oil sector, Arab News reported in its website based on a forecast by capital market company Riyad Capital.
The growth will be driven by a sturdy fiscal policy geared towards increasing investment spending. The oil sector, which accounts for a relevant share of the Saudi economy, is expected to continue its growth trajectory estimated at 1.2% in 2023.
Last year, Saudi Arabia’s gross domestic product (GDP) growth rate increased to 8.7% – the highest rise since 2011, noted the report. The oil sector was one of the main drivers in 2022. In the fourth quarter of 2022 alone the Saudi economy recorded a growth of 5.4%.
Riyad Capital based its 2023 oil forecasts on Saudi Arabia’s stable oil production rate, with an average of 10.7 million barrels per day, after reaching 10.6 million barrels per day in 2022.
As for oil prices, the report predicted a somewhat weaker performance in the first half of 2023 thanks to the current downturn in the global economy. Nevertheless, a significant global recovery will follow in the second half of the year on the expectation that Brent crude oil will end 2023 at a level above USD 100 a barrel, with the annual average at USD 92.
Translated by Guilherme Miranda
