The World Bank raised Saudi Arabia’s growth forecast during 2025 by about 1.7% to reach 5.9%, up from its previous forecast last January at 4.2%, reported Ajel.SA.
The Kingdom’s GDP per capita is expected to grow by 0.5% in 2024, compared to the previous year’s contraction of 2.8%.
Moreover, the World Bank confirmed that the Kingdom was able to contain inflation, thanks to strict monetary policies and significant support for food and energy.
According to a report from the General Authority for Statistics (GASTAT), the Saudi inflation rate maintained its ground at 1.8% this February.
The non-oil private sector in the Kingdom is expected to grow by 4.8% during the current year, thanks to expansionary public finance policies.
Saudi’s non-oil activities recorded its highest-ever contribution to the Gross Domestic Product (GDP) in 2023, reaching an impressive 50%. This milestone, as analyzed by the Ministry of Economy and Planning based on data from the General Authority for Statistics (GASTAT), signifies a historic peak in the diversification of KSA’s economy.
The total value of the non-oil economy soared to 1.7 trillion Riyals at constant prices, propelled by sustained growth in investment, consumption, and exports.
Moody’s Analytics predicted an average growth of 3.2% for the Saudi economy from 2023 to 2026, reported Al Arabiya. It expected non-oil GDP in Saudi Arabia to grow annually between 3% and 4% until 2030. This growth is projected to make the non-oil economy about 56% of the Kingdom’s total GDP.
Saudi Arabia aims to diversify its economy in preparation for a post-oil era and enhance its global presence. This led to the launch of Vision 2030 in 2016.
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