RIYADH, Sept 26 (Arab News): Saudi Arabia's gross domestic product is projected to grow by 1.4 per cent in 2024, with an acceleration to 5.3 per cent in 2025, according to S&P Global's latest analysis of emerging markets.
The US-based credit rating agency noted that anticipated rate cuts by the US Federal Reserve will likely benefit emerging markets like Saudi Arabia, which has strong growth fundamentals and increased capital inflows.
Earlier this month, S&P Global emphasized that Saudi Arabia's economic growth will be supported by its diversification strategy aimed at strengthening the non-oil private sector and reducing dependence on crude revenues.
"Saudi Arabia's economic transformation is underway. The country is going through an unprecedented period of social, economic, and political reforms, designed to diversify its economy away from hydrocarbons," the report stated. It further added, "In the next couple of years, these reforms will continue to raise domestic demand indicators, particularly those related to household spending, tourism, and construction."
The agency forecasts economic growth of 4 per cent in 2026, followed by a slight decline to 3.6 per cent in 2027. Additionally, S&P Global anticipates an inflation rate averaging 1.8 per cent in 2024 and 1.6 per cent in 2025.
KSA’s economy set for 5.3pc growth in 2025
FE Team | Published: September 26, 2024 23:55:10
KSA’s economy set for 5.3pc growth in 2025
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