Goldman Sachs raises Saudi growth forecast to 4.5% in 2021

Saudi flag

Goldman Sachs Group Inc. raised its expectations for Saudi Arabia’s gross domestic product (GDP) to 4.5% this year, compared to an earlier 2.5%, Bloomberg reported.

This was backed by the rise in oil prices to more than $70 per barrel and the improvement of the non-oil sector.

The bank expects the Saudi economy expanding a further 7% in 2022, compared to a 5.7% forecast previously, followed by an unchanged 1.2% growth rate in 2023 and 2024.

“Saudi oil production is expected to rise by around 500,000 barrels per day, to reach 10 million barrels by the end of 2021 and 10.5 million in 2022,” the bank’s Middle East and North Africa economist, Farouk Soussa, said.

“We see risks to the oil sector as being significantly skewed to the upside,” Soussa noted, adding that domestic demand has “recovered strongly”.