World Bank: Saudi Arabia’s GDP to grow 2.5 percent in 2024 prompted by non-oil activities

(MENAFN) In 2024, Saudi Arabia's real gross domestic product (GDP) is forecasted to expand by 2.5 percent, driven chiefly by strong non-oil private sector activities, expected to grow by 4.8 percent. This growth aligns with projections outlined in the Spring 2024 Gulf Economic Update released by the World Bank.

The Gulf Cooperation Council (GCC) region's economic growth is anticipated to rebound, reaching 2.8 percent in 2024 and further accelerating to 4.7 percent in 2025. As oil production quotas are anticipated to gradually ease in the latter half of 2024, the GCC's oil GDP is predicted to increase by 1.7 percent this year, with a significant upsurge to 6.9 percent expected in 2025.

Conversely, non-oil GDP in the GCC is forecasted to maintain its resilience, expanding by 3.6 percent in 2024 and sustaining a 3.5 percent growth rate in the medium term. This growth is underpinned by supportive fiscal policies, reduced interest rates, and robust private consumption and investment.

Safaa El-Tayeb El-Kogali, the World Bank's country director for the GCC, emphasized that the region's economic growth is propelled by concerted efforts to diversify away from oil dependency. She noted that despite a slowdown in 2023, with a modest annual growth rate of 0.7 percent following the exceptional 7.6 percent growth in 2022, the GCC's non-oil economy is set to thrive, with a projected growth rate of 3.6 percent in 2025.

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