Saudi real GDP expected to rise by 8pc

RIYADH, Oct 03 (Arab News): Saudi Arabia's budgeted revenues for 2023 are likely to be based on the Brent price at $76 per barrel, said Al Rajhi Capital in its assessment of the Kingdom's budget figures.
"For 2023, we believe oil revenues could reach SR754 billion ($200.7 billion) and non-oil revenue at SR417 billion," said the head of research at Al Rajhi Capital Mazen Al Sudairi.
"Based on our assessment, the government's 2023 budgeted revenues are likely based on an assumption of brent at around $76 a barrel."
Real gross domestic product growth is forecast to increase by nearly 8 per cent year-on-year in 2022 and 3.1 per cent year-on-year in 2023, according to Al-Rajhi Capital.
Inflation is expected to be 2.6 per cent and 2.1 per cent in 2022 and 2023 respectively, Al-Rajhi said.
Revised 2022 revenues are mostly in line with estimates, however, the expenditure budget is much higher than from an earlier announcement, it said.
The Kingdom's Finance Ministry's preliminary budget statement projected spending to reach SR1.11 trillion next year, with revenue of SR1.12 trillion.
The 2023 spending budget was raised by 18 per cent, with a slight fiscal surplus of SR9 billion expected for 2023.
The world's largest oil exporter is expected to balance the books in the coming year, having emerged with a quickly developing balance sheet due to the rebound in crude.