Saudi Gazette report

RIYADH — Global credit rating agency Moody’s has raised its growth forecasts for Saudi Arabia’s economy in 2023 and 2024.

In its annual report, Moody’s stated that the revision to increase the growth rate to 2.5 percent in 2023 and 3.1 percent in 2024 reflects expectations that non-oil private sector activity will remain strong.

The agency raised its expectations from previous figures that it had announced last November, with a growth of 1.7 percent in 2023, and by 2.6 percent in 2024. Moody’s had expected the Saudi economy to grow at an average rate of about 3.9 percent during the years from 2022 to 2026.

The annual report lauded the strength of the Saudi economy despite some challenges, stressing the importance of the steps taken by the Kingdom to diversify its economy away from oil, which is beginning to bear fruit. Moody’s confirmed that the Kingdom has strengths that support its high credit rating and stable outlook for its economy.

Moody’s confirmed that the Kingdom has strengths that support its high credit rating and stable outlook for its economy. These strengths include a solid balance sheet backed by moderate levels of debt and large financial reserves, in addition to its huge oil reserves, low oil extraction costs, and a financial system that it describes as well-organized and prudently managed.

The agency predicted that growth in the Kingdom would have recorded 8.7 percent in 2022 from 7.4 percent in its previous forecast in November, 2.5 percent in 2023 from 1.7 percent, and 3 percent in 2024 from 2.6 percent.

Moody’s published its macro forecasts for the G20 economies, including Saudi Arabia, and conducted upward revisions to growth forecasts for 2023 in the United States, the euro area, and China. The credit rating agency raised growth forecasts for India, Mexico, Russia, and Turkey.