RIYADH — S&P Global Ratings agency expected the Kingdom's GDP to grow to its highest rate in ten years to 7.5 percent in 2022 with an expected financial surplus in the state budget of about 6.3 percent.

The agency updated its outlook for Saudi Arabia on Friday to positive as the country's recovery from the pandemic is accelerating.

The agency described the inflation rates in the Kingdom as relatively low in comparison to its counterparts and that those rates would be under control in view of the government subsidizing of fuel and food prices in addition to tying the local currency with the relatively-strong US dollar.

It assessed the Kingdom's short and long term foreign and local currency sovereign credit ratings to A-/A-2.

“The positive future outlook reflects the strength of gross domestic product (GDP) growth, the country's financial policies at the backdrop of its success in recovering from the repercussions of the pandemic, and the sustainability of government reform programs drive.

“This is in addition to the increasing growth of the non-oil economy which has made great strides in supporting the Kingdom's financial and foreign indices,” Saudi Press Agency quoted the agency statement.

S&P also forecasted a growth of the Saudi economy product capacity and a drive of the growth in the long run due to efforts of developing the general finances and mega economic reforms.

Dealing with flexibility and performance, the agency expected support of the financial credits in 2022-2025 due to governmental efforts in developing the public finances and commitment of improving the spending and efficiency of expenditure despite oil high prices.

The agency also forecast no dramatic rise of sovereign debts costs on the Kingdom as most of the public debt portfolio is running at a fixed rate. — SG