OECD forecasts 3.9 percent Saudi economy increase in 2024

Global economy to grow by 3.0 percent in 2023, then slow to 2.7 percent in 2024
OECD forecasts 3.9 percent Saudi economy increase in 2024
Saudi economy poised for robust growth (Photo from Reuters)

According to the Organization for Economic Co-operation and Development (OECD), Saudi Arabia is poised for robust growth in the near future. The Kingdom’s economy is projected to increase by 3.9 percent in 2024.

According to the findings, Saudi is anticipated to achieve an average inflation rate of 2.1 percent in 2024. This figure highlights successful efforts in managing and mitigating price pressures within the Kingdom.

Read more: Positive prospects for Saudi economy with strong non-oil growth momentum: IMF

As per the report, Saudi is expected to be one of the few countries experiencing economic growth above 3 percent in 2024.

OECD said the Saudi economy is projected to grow by 1.9 percent in 2023, and the inflation rate is expected to remain stable at 2.5 percent.

Global economy

The OECD said the global economy is forecasted to achieve growth rates of 3 percent and 2.7 percent in 2023 and 2024 respectively. Moreover, the report highlights expectations for a moderation in the inflation rate.

Inflation is expected to gradually moderate throughout 2023 and 2024. Nevertheless, it is anticipated to remain above central bank objectives in most economies.

The report added two key points. Firstly, headline inflation is declining. Secondly, core inflation remains persistent in many economies. This persistence is attributed to cost pressures and high margins in certain sectors.

The OECD forecasts a growth rate of 0.8 percent for the United States (U.S.) and 1.3 percent for the United Kingdom (U.K.) in 2024.

Conversely, the Australian economy is expected to experience a growth rate of 1.3 percent. On the other hand, Brazil is projected to see a growth rate of 1.7 percent.

Also, the OECD highlighted that Japan’s economic growth is projected to reach 1.8 percent in 2023 and 1 percent in 2024.

Additionally, China and India are anticipated to surpass Saudi Arabia’s economic growth. China is expected to expand by 4.6 percent. Meanwhile, India projected to grow by 6 percent.

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