Capital Economics presents a positive outlook for the future of the Saudi Economy, highlighting significant growth in the Non Oil sector and the impact of major public projects.
🔸️ Growth in the Non-Oil Sector
▪️ The non-oil economy is expected to grow by 5% in 2024, supported by fiscal policy easing and major public projects.
▪️ Overall economic growth in Saudi Arabia is projected to reach 2.8% in 2024 and 4.5% in 2025.
🔸️ Increase in Oil Production
Saudi oil production is expected to rise to 10 million barrels per day by the end of 2024.
🔸️ Record Performance in Non-Oil Sectors
▪️ Non-oil activities registered a historic contribution to the real GDP at 50% in 2023,
▪️with expectations of increasing to 53% in 2024
▪️and 55% in 2025.
🔸️ Key Sectors Driving Growth
Strong growth is anticipated in sectors such as tourism, entertainment, manufacturing, and Financial Services, significantly supporting the GDP.
🔸️ Momentum in Foreign Direct Investment
Foreign direct investment FDI is expected to reach $18.6 billion in 2024 and $20.5 billion in 2025, boosting developmental projects and creating job opportunities.
🔸️ Support from Foreign Exchange Reserves
Saudi foreign exchange reserves are expected to reach $1.1 trillion in 2024 and $1.2 trillion in 2025, providing strong financial support for the currency and aiding in financing imports.
🔸️ Improvement in Unemployment Rates
▪️ The unemployment rate is expected to decrease to 4.2% in 2024 and to 4% in 2025, thanks to training programs and employment opportunities.
🔸️ Stability in Inflation Rates
▪️ The inflation rate is projected to be 2.5% in 2024 and 2.3% in 2025, with the Saudi Central Bank’s SAMA policy contributing to price stability.
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