The Mena region’s economic recovery from the effects of the pandemic and the falling price of oil continues apace with news that the Saudi Arabian economy grew at its fastest pace in more than a decade during the second quarter of 2022.
According to data from Saudi-based Al Rajhi Capital, the kingdom’s GDP rose by 12.2% between April and June, outpacing the 9.9% GDP growth recorded during the first quarter.
The growth has led the International Monetary Fund (IMF) to forecast that Saudi Arabia will be among the fastest growing economies with 7.6% GDP growth this year.
The rating agencies are making similarly optimistic forecasts. Standard & Poor Global Ratings affirmed Saudi Arabia’s A-/A-2 rating along with a positive outlook based on higher oil revenues, rising oil production and the government’s economic reform programme.
In August the IMF forecast that oil states in the Middle East would see a $1.3 trillion boost in additional oil and gas revenue this year.
And in September, the GCC central banks, including Saudi Arabia, raised their interest rates in alignment with the 75 basis points rise announced by the US Federal Reserve.
©2022 funds global mena