Recovery after Covid and war in Ukraine… The current cocktail benefits the Saudi economy, which is fueled by oil. Saudi Arabia’s gross domestic product (GDP) grew by almost 12% in the second quarter of 2022, the authorities of the wealthy Gulf monarchy announced on Sunday.
“Saudi Arabia’s real GDP grew by 11.8% in the second quarter of 2022 compared to the second quarter of 2021,” according to estimates by the General Statistics Authority. That growth is due to “the significant increase in oil activity by 23.1%, in addition to the 5.4% increase in non-oil activity,” she said.
Highest growth rate in ten years
In May, Saudi Arabia announced its highest growth rate in ten years, with a 9.6% increase in the first quarter of 2022 compared to the same period last year, thanks in part to the boom in the oil sector.
The surge in crude oil prices is benefiting exporting countries, including those in the Gulf, which are being courted by Western powers, who are urging them to open the floodgates of production to calm markets and thus limit global inflation.
The Crown Prince of Saudi Arabia, who has effectively ruled the country since 2017, received US President Joe Biden in early July and met French President Emmanuel Macron this week.
Saudi Arabia is sticking to commitments made under OPEC+
But like the UAE, Saudi Arabia, which leads OPEC+ with Russia, is sticking to the production commitments of this powerful cartel of exporting countries. According to the International Monetary Fund, Saudi Arabia is projected to record 7.6% YoY GDP growth in 2022.