RIYADH: Affirming Saudi Arabia’s strong growth prospects in the near term, the Organization for Economic Co-operation and Development revealed that the Kingdom’s gross domestic product is expected to rise by 3.9 percent in 2024.
The OECD revealed that Saudi Arabia’s inflation rate is expected to average 2.1 in 2024, a sign that the Kingdom is successfully combating price pressures.
Earlier this month, the International Monetary Fund echoed similar views and noted that Saudi Arabia has succeeded in maintaining its average consumer price index despite inflationary pressures faced by several countries across the globe.
The report noted that Saudi Arabia will be among the few countries with economic growth above 3 percent in 2024.
The OECD projected that the US and the UK could grow by 0.8 percent and 1.3 percent in 2024.
On the other hand, the Australian economy could witness an economic growth of 1.3 percent and Brazil 1.7 percent.
The OECD projected Japan’s economic growth at 1.8 percent in 2023 and 1 percent in 2024.
China and India are some of the countries that are expected to surpass Saudi economic growth, expanding by 4.6 percent and 6 percent, respectively.
The report added that the Saudi economy will grow by 1.9 percent in 2023 while the inflation rate will remain stable at 2.5 percent.
In its report, the OECD revealed that the world economy is expected to grow by 3 percent and 2.7 percent in 2023 and 2024, respectively, while the inflation rate is expected to moderate.
“Inflation is projected to moderate gradually over 2023 and 2024 but to remain above central bank objectives in most economies,” the OECD said in its report.
“Headline inflation is declining, but core inflation remains persistent in many economies, held up by cost pressures and high margins in some sectors,” the report added.
The European Central Bank had raised a key interest rate to a record high last week but hinted this might be its last hike. On the other hand, the US Federal Reserve is expected to pause its tightening campaign on Wednesday.