Economic outlook

Economic outlook

After experiencing the dual shocks of the pandemic and low oil prices, the Saudi economy is back on track. The IMF expects Saudi Arabia to grow 4.8% in 2022, up from 2.9% in 2021. Strong global demand for oil supports production and broader economic activity. Public construction activity related to Vision 2030 development projects and recovering tourism supports growth in the non-oil sector. Plans to offer more stock in the state-owned oil giant Saudi Aramco are expected to drive international investment in Saudi Arabia. Regional geopolitical tensions and oil price volatility remain key downsides to the outlook.

After facing significant setbacks owing to the pandemic, per capita GDP is expected to reach about $25,700 by 2026, according to IMF estimates. Saudi Arabia is still marked by a high degree of social inequality and a relatively high unemployment rate among youths.