The Saudi economy is expected to register growth of more than 11 percent in the fourth quarter of 2021, the highest among G-20 countries, according to latest data from IHS Markit.
The strong Q4 growth rate is 4.5 percent better than the next best G-20 performer Italy as the Gulf kingdom continues to rebound from the impact of the global coronavirus pandemic.
The Saudi GDP growth rate reached 7 percent in the third quarter of 2021, the highest annual growth rate since 2012, reported Saudi Press Agency on Tuesday.
The pace of Saudi employment in the private sector also hit its highest quarterly level ever, according to administrative records, reaching 90,000 during the fourth quarter of 2021.
The number of Saudi workers in the private sector exceeded, for the first time ever, 1.9 million in December while the rate of female participation in the labour market continued to accelerate, bypassing the 2030 Vision target as it reached 34.1 percent in Q3.
The value of Saudi non-oil exports amounted to SR195 billion by the end of the third quarter of 2021, an increase of 33 percent compared to the previous year.
Last month, Saudi Arabia’s Central Bank announced the extension of a financial support programme for private sector firms impacted by the coronavirus pandemic.
The central bank, known as SAMA, said it is extending by three months the Deferred Payment Programme – one of its private sector financing support programs – to March 31.
The support scheme aims to benefit omicro, small and medium enterprises that continue to be affected by the Covid-19 precautionary measures.
Since its launch on March 14 2020, the Deferred Payment Program has benefited more than 107,000 contracts with a total value of SR181 billion ($48.2 billion) in deferred payments.
The central bank has been at the forefront of the kingdom’s efforts to protect the economy from the pandemic and its latest move comes just weeks after Saudi Arabia boosted its revenue forecast for next year, with higher oil prices and production volumes poised to deliver the first surplus since 2013.
Revenue next year is set to reach more than SR1 trillion ($267 billion), up from SR903bn in a forecast published in September, according to a Finance Ministry statement. The kingdom expects to record a surplus of SR90bn next year, putting it 12 months ahead of a plan to balance the budget by 2023.
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