Saudi GDP to grow at 6.7% in 2022 backed by post-pandemic recovery: KPMG 

RIYADH: Saudi Arabian GDP is expected to grow at 6.7 percent in 2022, as the country recovers from the pandemic, forecasted tax and audit advisory firm KPMG in a recent outlook report.    

It added that the growth in GDP will be catalyzed by a sharp rise in oil production and an ongoing recovery in the non-oil economy. 

Real GDP growth may slow down in 2023

The report further stated that trends in 2022 are expected to continue into 2023, although real GDP growth will slow to 3.9 percent as base effects limit the year-on-year expansion. 

This comes after the real GDP in Saudi Arabia is estimated to have grown by 3.3 percent in 2021, following a contraction of 4.1 percent in 2020. 

The KPMG reports added that annual average inflation in Saudi Arabia will rise by 2.7 percent and 1.7 percent in 2022 and 2023, respectively.

Unemployment rate to ease

As Saudi Arabia continues its increased focus on non-oil sectors, the total unemployment rate is expected to continue to trend downwards, averaging 6.3 percent in 2022 and 6 percent in 2023, compared with an estimated average of 6.6 percent in 2021. 

“Despite expectations for a robust economic performance over the next two years, the rapid rehiring process that has already occurred as the domestic economy reopened, will limit the headline improvement in the unemployment rate,” the report noted.