RIYADH: Moody’s predicts that Saudi Arabia’s economy will expand by 1.7% this year before picking up speed to 4.7% in 2025 and 2026 due to government-supported initiatives to diversify the Kingdom’s economy.
The credit rating agency’s prediction is higher than earlier projections, including the Saudi government’s own 0.8 percent GDP forecast for 2024. The Kingdom’s pre-budget declaration, which projected 4.6 percent growth in 2025, is surpassed by Moody’s projection.
The 2025 prediction highlights the government’s commitment to economic growth through Vision 2030 and is in line with Saudi Arabia’s projected spending for the year, which is $343 billion. With significant expenditures in industries like technology, tourism, renewable energy, and infrastructure, these initiatives aim to diversify the economy away from oil.
Countries that export hydrocarbons in the Middle East are trying to diversify their economies away from the oil industry. In its most recent analysis, Moody’s predicted that government-backed initiatives linked to this goal will propel robust growth in Saudi Arabia the following year.
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