Saudi GDP quarterly growth rate reaches 10-year high
Saudi Arabia is investing in several sectors in its bid to diversify the economy, but oil remains a major driver of growth.
Saudi Arabia’s gross domestic product (GDP) grew significantly in the second quarter of 2022.
The Saudi General Authority for Statistics said that GDP increased 12.2% in the second quarter, compared to the same period last year. GDP also increased 2.2% from the first to the second quarter this year. The yearly increase was the biggest since 2011, the authority said in a release.
Why it matters: The Economist Intelligence Unit reported last month that Saudi Arabia is on track to be the world’s fastest-growing economy in 2022.
“The kingdom has recovered quickly from a pandemic-induced recession in 2020 and is reaping the rewards of high global energy prices and increased energy production. Economic fundamentals are moving in the right direction with the budget balance returning to positive territory and public debt shrinking in 2022, while consumer price inflation is contained,” read the report.
