Saudi Arabian economy expected to grow by 7.6% in FY 2022

Saudi Arabian economy is expected to grow by 7.6% in FY 2022, the rate that is an all-time high in the last 10 years with the inflation expected to remain at 2.8%, which is the lowest in GCC.

According to a recent IMF statement, the Saudi economy is \’recovering strongly\’ from the post-pandemic recession. IMF however, has concerns over inflationary pressures due to higher food prices. “Saudi Arabia managed the COVID-19 pandemic well and is well-positioned to weather the risks posed by the war in Ukraine and monetary policy tightening cycle in advanced economies,\” the fund noted.

On the conservative side, Moody’s (the credit rating agency) predicted the KSA economy growth to be on an average rate of about 3.9% from FY 2022 to FY 2026. . It is also worth mentioning here that Moody’s revised its credit rating report for the Kingdom during June 2022 to “A1” with a stable outlook. The success contributing factors are the government’s consistency in controlling public financial conditions, implementing structural reforms, as well as its continued commitment to long-term financial sustainability.

According to Moody’s leading factors to this growth include mainly, the continued maintenance of financial control in spite of rising in oil prices, less production of oil despite of rising in demand, and the continuance of investment in economic diversification projects.

Courtesy:  Leading Internal Audit, Financial, Tax & Management Consultancy in KSA

Management Consultant in Dubai

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