The Government data records shows that, the kingdom’s Non-Oil economy progressed to 2.4 percent in the last three months of the preceding year 2020.
During the fourth quarter of 2020, with the recovery modus operandi on cards from the pandemic-induced slump down, the kingdom’s overall Gross Domestic Product progressed around 2.5 percent from preceding three months last closure of the previous year.
The Arab league’s largest economies Non-Oil Private arena progressed by 3.2 percent quarter-on-quarter, the non-oil private sector, while the government arena expansion by 0.6 percent within the same period.
The Chief Economist within the Abu Dhabi Commercial Bank, Monica Malik stated out that: “There was a robust echo in economic action in Q4 and the kingdom’s overall investment module provisions the development outlook in forthcoming time frame. The fact that we will have noticeably advanced oil revenue this year is positive outcome for confidence.”
Ms Malik further stated that: “The kingdom has managed oil prices very well, but going forward, there are challenges on that front.”
The Chief economist as well as Managing Director at Oxford Economics, Scott Livermore, stated out that he has anticipated that: “the expansion is to be robust for any slump back within the Oil rates, since the kingdom has better access for global debt markets.”
Saudi Arabia’s GDP, however, slumped off to 3.9 percent in the fourth quarter on an annual basis. The nation’s oil sector withered by 8.5 percent, while its non-oil sector narrowed down by 0.8 percent from the same period in 2019.
Mr Livermore anticipated Saudi Arabia to endure and strive harder in recovering “robustly” from COVID-19 Pandemic, with the non-oil GDP projected to upsurge 3.6 percent this year and further surging to 4 percent within 2022. The International Monetary Fund anticipates national economy to progress 2.6 percent post slumping to an anticipated 3.9 percent the preceding year.
He further added that “The expansion will be powered in a huge part via public sector investment, specifically via the PIF (Public Investment Fund).”
The kingdom’s GDP at current values touched 697.6 billion riyals ($186.bn) in the fourth quarter of 2020. The private sector reported for 50.5 percent of the national GDP, followed by the government sector with an anticipated share of 25.4 percent and the oil sector accounting for 24.1 percent, as according to government data.
GDP per capita accounted for 19,695 riyals in the fourth quarter of 2020, having an upsurge of 3.8 percent on the prior quarter but slumped down 11.7 percent from the same quarter of the preceding year.
The Arab world’s major economy is spreading under its Vision 2030 programme by evolving a robust non-oil economy. Appealing foreign capital into its industrial, defence, mining, retail, health and education sectors is one of the essential planks of Riyadh’s revolution desires.