Saudi Economy shows strong economic resilience among G20 Nations; Report

By Arya M Nair, Intern Reporter
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Saudi Arabia
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The Saudi economy is expected to grow at the fastest rate among the G20 countries, at 11.1 percent in the fourth quarter of 2021, a gap of approximately 4.5 percent from its nearest competitor, Italy, according to the UK-based IHS Markit index.

The achievement demonstrates the effectiveness of the Kingdom’s economic reforms since the launch of its Vision 2030. These positive figures reflect the supervision of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister, and Chairman of the Council of Economic Affairs and Development.

This had a significant impact on overcoming the COVID-19 pandemic’s consequences with minimal damage despite sharp drops in oil prices, as the Saudi economy’s growth level come at a time when many countries, including major economies, are still struggling to overcome the pandemic’s repercussions, which are comparable to the effects of World War II.

The Saudi GDP growth rate reached 7 percent in the third quarter of 2021, the highest annual growth rate since 2012, reflecting the Kingdom’s economic potential for rapid recovery from the pandemic’s effects and the resumption of economic activities, as well as benefiting from the Saudi government’s exceptional efforts in addressing the pandemic’s challenges and the stimulus measures provided for the national economy.

COVID-19 had a huge economic impact on a number of key sectors, including employment. However, the Saudi economy outperformed the rest of the world, with private sector employment hitting 90,000 in the fourth quarter of 2021, according to administrative data, the highest quarterly level ever.

In December 2021, the number of Saudi workers in the private sector exceeded 1.9 million for the first time, owing to the efficiency of the Kingdom’s government initiatives in creating jobs. Meanwhile, due to the Kingdom’s social and economic reforms, women ’s role in the labor market has continued to rise, surpassing the 2030 target and reaching 34.1 percent in the third quarter of 2021.

Saudi non-oil exports reached $52 billion at the end of the third quarter of 2021, a rise of 33 percent from the previous year, highlighting the Kingdom’s efforts to diversify its economy and reduce its reliance on oil. This economic boom and the diversification of the economy will be achieved through several elements that will contribute to pumping more than $3.2 trillion by 2030.

Related: Saudi Exports wins ISO certification for Business Continuity


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