Confronting Corona, oil prices, and the investment fund program raise the expectations of the growth of the Saudi economy


The World Bank raised its forecast for the growth of the Saudi economy by about 0.4 percent to 2.4 percent during the current year, and by about 1.1 percent during the next year 2022 to reach 3.3 percent.
In the current June report issued yesterday, the bank also expected the Saudi economy to grow by 3.2 percent during 2023.
This comes after the bank expected in its January report that the Saudi economy would grow by 2 percent in 2021 and 2.2 percent in 2022.
The World Bank attributed its expectations for the growth of the Saudi economy in the coming years to positive developments in the face of the outbreak of the “Corona” virus, and high oil prices, in addition to a huge investment program led by the Public Investment Fund, equivalent to 5 percent of GDP annually for the next five years.
Prince Mohammed bin Salman, Crown Prince of Saudi Arabia and Chairman of the Board of Directors of the Public Investment Fund, announced the fund’s new strategy, which aims to pump local investments of at least 150 billion riyals annually into the Saudi economy.
And the Saudi economy, “Saudi GDP at constant prices”, recorded a decline of 4.1 percent during the past year, to reach 2.53 trillion riyals, compared to about 2.64 trillion riyals in 2019, a decrease of 108.4 billion riyals, mainly due to the decline in the oil sector by 6.7 percent. cent as a result of the repercussions of the outbreak of the Corona pandemic on global demand and oil prices.
While the non-oil sector declined by 2.3 percent, as a result of the private sector’s 3.1 percent decline, and the government sector 0.5 percent.


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